It costs $8 to play the game. Determine:

· The expectation of a person who plays the game.

· The fair price to play the game.

My work:

E=P(wins)(amount won)+P(loss)(amount lost)

E=1/3(-6)+2/3(-8)

E=1/3*-6/1 + 2/3*-8/1

E=-2/1+-16/3

E=-6/3+-16/3

E=-22/3=7.333

E=$7.33

Fair price=expectation + cost of play

Fair price= 7.33 +8.00

Fair price= $15.33

This just doesn't seem right to me, can someone tell me where I went wrong?