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Two dice, keep the sum or re-roll both once

Asked at SIG, Optiver

You roll two fair six-sided dice and are paid their sum in dollars. You may keep the sum, or discard it and re-roll both dice once, taking whatever they then total.

What is the optimal strategy, and what is the fair value of the game?

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The re-roll is worth the mean sum, 77. Keep sums above 77, but be careful: you need the conditional mean of the kept sums, not just their average.

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