The owner of a casino wants to increase pro t by providing buses that can transp

Question

The owner of a casino wants to increase prot by providing buses that can transport gamblers from other cities. Research shows that these gamblers tend to play slot machines only, and they have losses with a mean of $182 and a standard deviation of $105. The buses carry 35 gamblers per round-trip and their total cost $175 per round trip. Additionally, the casino gives each passenger $45 worth of vouchers that can be converted to cash. What is the probability that the casino's profit increases when it provides such buses?

Explanation / Answer

Casino needs to make a profit of at least ($175)/35 +$45 = $50 per passenger z = (50-182)/[105/sqrt(35)] = -7.44 Probabilty of making a profit is > 0.9999

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