Expected Payoff of Max Difference of Dice
You and I each roll a fair six-sided die, getting values $X$ and $Y$ respectively. Your payoff is $\max(X - Y, 0)$.
(a) Give an 80% confidence interval for how much you would pay to play this game.
(b) Calculate the exact expected payoff $E[\max(X - Y, 0)]$.
(c) You can switch your fair die to a non-standard die with faces $\{1, 1, 1, 6, 6, 6\}$. Should you switch?
(d) Instead, you can switch **my** (the opponent's) die to the $\{1, 1, 1, 6, 6, 6\}$ die. Should you make this switch?
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