In a gambling game, on every play, there is a 0.1 probability that you win $7...

In a gambling game, on every play, there is a 0.1 probability that you win $7 and a 0.9 probability that you lose $1. What is the expected value of this game?

Expert Solution

Expected value = 7 * 0.1 - 1 * 0.9 = -$0.2

orchestra answered 1 year ago

The probability of winning on an arcade game is 0.678. If you play the arcade game...

The probability of winning on an arcade game is 0.678. If you play the arcade game 24 times, what is the probability of winning no more than 12 times? (Round your answer to 3 decimal places, if necessary.)

Suppose you play a coin toss game in which you win $1 if a head appears...

Suppose you play a coin toss game in which you win $1 if a head appears and lose $1 if a tail appears. In the first 100 coin tosses, heads comes up 34 times and tails comes up 66 times. Answer parts (a) through (d) below. a. What percentage of times has heads come up in the first 100 tosses? 34% What is your net gain or loss at this point? Select the correct choice and fill in the answer...

Consider a gambling game where a player pays $10 to play with a 40% chance of...

Consider a gambling game where a player pays $10 to play with a 40% chance of winning $20, 40% chance of winning $1, and a 20% chance of winning $0. (a) If the player’s utility function is U(M) = M, what is the expected utility from playing the game? How does it compare to the player’s utility of not playing the game, i.e. having $10 for sure? Is the player risk-neutral, risk-loving, or risk-averse, and does the player play? (b)...

In a certain game it is possible to win either 1,2,3,4, or 5 dollars. The probability...

In a certain game it is possible to win either 1,2,3,4, or 5 dollars. The probability of winning d dollars is proportional to 1/d. (a) What is the probability of winning d dollars (d ∈{1,2,3,4,5})? (b) Would you play this game for $4? What about for $3? Hint. You must calculate the expected value for this problem! (c) What is the variance of the expected winnings of this game?

Probability A B 0.1 (7 %) (20 %) 0.1 5 0 0.6 15 21 0.1 22...

Probability A B 0.1 (7 %) (20 %) 0.1 5 0 0.6 15 21 0.1 22 27 0.1 30 48 Calculate the expected rate of return, , for Stock B ( = 14.00%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 16.74%.) Do not round intermediate calculations. Round your answer to two decimal places. % Now calculate the coefficient of variation for...

The probability that a certain hockey team will win any given game is 0.3628 based on...

The probability that a certain hockey team will win any given game is 0.3628 based on their 13 year win history of 377 wins out of 1039 games played (as of a certain date). Their schedule for November contains 12 games. Let X = number of games won in November. Find the probability that the hockey team wins at least 7 games in November. (Round your answer to four decimal places.) Please use TI-84 calculator not excel. Thanks!

A gambling game called "Rollo" pays 3 to 1, and you have a 1 in 6 chance of winning on any given play.

A gambling game called "Rollo" pays 3 to 1, and you have a 1 in 6 chance of winning on any given play. Find the probability that you lose a total of $20 or more if you bet one dollar on each of 200 plays of Rollo. Give your answer in percent, without the percent sign.Describe the details of your calculation in the previous problem. Describe the box model (how many tickets in the box model, what numbers are on...

Question 7 (1 point) Poker game: You pay $5 to play. A 7-card poker hand is...

Question 7 (1 point) Poker game: You pay $5 to play. A 7-card poker hand is dealt, and you are paid $89 if the hand contains a 3 of a kind [at least 3 cards of the same value] and nothing otherwise. What is the expected value of your payoff from this game? [Round to 3 digits after decimal point] Your Answer:

You play a game that has the following payoffs: (25 pts) 35% probability of winning $1,000...

You play a game that has the following payoffs: (25 pts) 35% probability of winning $1,000 35% probability of losing $1,500 30% probability of winning $550 Use the information above to answer the following questions: a) What is the expected value of playing the game? (5 pts) b) Would a risk neutral person play this game? Why or why not? (5 pts) c) What level of risk tolerance (e.g. risk seeking, risk averse, risk neutral) must a person have to...

16. Which one do you agree, “trade is a zero-sum game” or “trade is a win-win...

16. Which one do you agree, “trade is a zero-sum game” or “trade is a win-win situation”? Explain your answer.

Question