I do not know how to calculate d In the carnival game Under-or-Over-Seven, a pai

Question

I do not know how to calculate d

In the carnival game Under-or-Over-Seven, a pair of fair dice is rolled once, and the resulting sum determines whether the player wins or loses his or her bet. For example, using method one, the player can bet $2.50 that the sum will be under 7, that is, 2, 3, 4, 5, or 6. For this bet, the player wins $2.50 if the result is under 7 and loses $7.50 if the outcome equals or is greater than 7 similarly, using method two, the player can bet $2.50 that the sum will be over 7, that is, 8, 9, 10, 11, or 12 Here, the player wins $2.50 if the result is over 7 but loses $2.50 if the result is 7 or under A third method of play is bet $2.50 on the outcome 7. For this but the player wins $10,00 if the result of the roll is 7 and loses $2.50 otherwise. Complete part(a) through (d). a. Construct the probability distribution representing the different outcomes that are possible for a $2.50 bet using method one. b. Construct the probability distribution representing the different outcomes that are possible for a $2.50 hat using method two c. Construct the probability distribution representing the different outcomes that are possible for a $2.50 bet using method three. d. What is the expected long run profit (or loss) to the player for each of the three methods of play? Method one expected profit (or loss) mu = $-0.65 Method two expected profit (or loss) mu = $ -065 Method three expected profit (or loss) mu = $ -0.65

Explanation / Answer

d) expected value = sum (x*p(x))

Expected value =2.5*6/12+(-2.5)*7/12=1.25-1.46=-0.21

Here expected value is negative .

Expected loss =- 0.21

For method 2

Expected value =2.5*5/12 +(-2.5)*7/12

=1.042-1.46

=-0.418

Expected loss=-0.418

For third method

Expected value=10*1/6 +(-2.5*5/6)

=1.67-2.0833

=-0.4133

Expected loss = -0.4133

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.