Sam the gambler offers you an opportunity to play one of several games in which a...

Sam the gambler offers you an opportunity to play one of several games in which a 10-sided die is rolled. If an 8 or 9 or 10 is rolled on the die, you win money. Otherwise you pay money. Here are the gains and losses for the possible games. Game 1 win-$70 lose-$30 Game 2 win-$30 lose-$70 Game 3 win-$50 lose-$20

1. Calculate the Expected Value for each of the three games.

2. Which game should you play?

3. Which game should neither you nor Sam bother playing for money?

Expert Solution

The detailed solution is given in the pictures below.

Please go through them carefully specially the notations.

Hope the solution helps. Thank you.

orchestra answered 2 years ago

Niyat is a gambler and regularly plays several rounds of a gamble in which he wins...

Niyat is a gambler and regularly plays several rounds of a gamble in which he wins $3,000 if even number of dots face up when a fair die is rolled twice and loses $1,000 for any other outcome from the two rolls of the die. In other words, the outcome of the gamble is determined by rolling a die twice on each round of the gamble and Niyat wins only if even number of dots show up on top in...

Desta is a gambler and regularly plays several rounds of a gamble in which he wins...

Desta is a gambler and regularly plays several rounds of a gamble in which he wins $6,000 if odd number of dots face up when a fair die is rolled twice and loses $2,000 for any other outcome from the two rolls of the die. In other words, the outcome of the gamble is determined by rolling a die twice on each round of the gamble and Desta wins only if odd number of dots show up on top in...

1. Nobel is a serial gambler and regularly plays several rounds of a gamble in which...

1. Nobel is a serial gambler and regularly plays several rounds of a gamble in which he wins $10,000 if the head comes on top twice when a fair coin is flipped twice and loses $5,000 for any other outcome from the two flips of the coin. In other words, the outcome of the gamble is determined by flipping a coin twice on each round of the gamble and Nobel wins only if head comes on top on both flips...

You are to play three games. In the first game, you draw a card, and you...

You are to play three games. In the first game, you draw a card, and you win if the card is a heart. In the second game, you toss two coins, and you win if one head and one tail are shown. In the third game, two dice are rolled and you win if the sum of the dice is 7 or 11. What is the probability that you win all three games? What is the probability that you win...

This question provides you with an opportunity to analyze the advantages of an organization that offers...

This question provides you with an opportunity to analyze the advantages of an organization that offers quality customer service. First, describe what it means to you to provide quality customer service for both internal customers and also external customers. Second, use your critical-thinking skills to explain how quality customer service can impact an organization's entire culture. Your response must be at least 200 words in length.

You are considering a project with an opportunity cost of 10% and that offers up the...

You are considering a project with an opportunity cost of 10% and that offers up the following two possible payouts based on your ability to market the product: In the optimistic state you expect the following payouts, -$4,795, $8,000, $8,000. Based on your pessimistic expectations you expect the following -$4,795, -$500, -$10,000. The cash flows fall at time period 0, 1 and 2. Your sense is that there is a 40% chance things will turn out well and a 60%...

You are considering a project that offers up the following possible payout with an opportunity cost...

You are considering a project that offers up the following possible payout with an opportunity cost of 20%. Time 0 1 2 Base Case -$60,000 10,000 10,000 At the end of year two you know there is a 10% possiblity you will buy out your competitor which has the potential to create opportunities that are worth $1,028,231 at that time. How much potential value is created or lost by taking on this project (i.e. what is the NPV)?

You are about to play a series of 9 chess games online against an opponent called...

You are about to play a series of 9 chess games online against an opponent called EliteChampion. The first to win 5 games wins the series. (Ignore the possibility of a draw.) You know that EliteChampion is most likely your friend, Jenna. There’s a 20% chance EliteChampion is your Mom, and that’s the only other possibility. You beat your Mom 70% of the time, but you only beat Jenna 40% of the time. Given that you won the first game,...

1.A classmate offers you the chance to invest into a businesses opportunity wherein you would pay...

1.A classmate offers you the chance to invest into a businesses opportunity wherein you would pay $60 for a crypt-currency and are responsible for re-selling those currencies to other students. Any revenue you make is yours to keep. - There is a 33% chance you cannot sell the currency and you lose $60. - There is a 66% chance you sell the currency for $90. Is this a good investment? Y.Yes N.No 2.Stock represents what? A.A tradable investment B.Wall Street...

Two people have come to your restaurant with different offers. Sam "I'll sell you a brand...

Two people have come to your restaurant with different offers. Sam "I'll sell you a brand new soft-serve ice cream machine. It'll cost $4,000 and should provide you with an extra $1,000 of revenue every year. You'll only have to pay about $100/year to maintain it, and it should last for nine years. Ella "I run a party venue just down the street from your restaurant. I'll charge you $10,000 to put signage up in the venue, and you can...

Question