Question

In: Statistics and Probability

You have R500. You are approached by a person that offers you a game. You flip...

You have R500. You are approached by a person that offers you a game. You flip a coin and if it’s heads you win R450 and if it’s tails you win R50. He says it costs R250 to play each round. You decide to play 2 rounds (so you spend your full R500). Calculate the expected return and standard deviation of playing the game 2 times.

Please include explanation for each step

Solutions

Expert Solution

NOTE:: I HOPE YOUR HAPPY WITH MY ANSWER....***PLEASE SUPPORT ME WITH YOUR RATING...

***PLEASE GIVE ME "LIKE"...ITS VERY IMPORTANT FOR ME NOW....PLEASE SUPPORT ME ....THANK YOU


Related Solutions

(St Petersburg Paradox). Suppose you have the opportunity to play the following game. You flip a...
(St Petersburg Paradox). Suppose you have the opportunity to play the following game. You flip a fair coin, and if it comes up heads on the first flip, then you win $1. If not, then you flip again. If it comes up heads on the second flip, then you win $2, and if not you flip again. On the third flip, a heads pays $4, on the fourth $8, and so on. That is, each time you get tails, you...
As the discharge port agent you are approached by a person claiming to be a director...
As the discharge port agent you are approached by a person claiming to be a director of the ‘notify party’ shown on the bill of lading for one of the consignments. According to the manifest the Bill of Lading (B/L) is made out “to order”. He states that he does not have the original B/L and you tell him that the only way he will get that consignment is if he presents a letter of indemnity countersigned by a bank....
The physicians in previous problem have been approached by a market research firm that offers to...
The physicians in previous problem have been approached by a market research firm that offers to perform a study of the market at a fee of $5,000. The market researchers claim their experience enables them to use Bayes’ theorem to make the following statements of probability: probability of a favorable market given a favorable study -----0.82 probability of an unfavorable market given a favorable study 0.18 probability of a favorable market given an unfavorable study 0.11 probability of an unfavorable...
You flip a coin, if it is heads you will have a good day and if...
You flip a coin, if it is heads you will have a good day and if it is tails you will have a bad day. There are 30 days in total. (a) What is the expectation and variance of the number of times you will have a good day throughout this 30 day stretch? (b) What is the probability that every day will be bad for all of the 30 days?
Define the following events: A-> person had flip flops on B-> Person had blonde hair C->...
Define the following events: A-> person had flip flops on B-> Person had blonde hair C-> Person had red hair D-> Person had black hair E-> Person had brown her a. What is P(B')? b. What is P(C U E)? c. What is P(A U C)? d. What is P(A intersection C)? e. What is P(A' intersection (B U D))? Define the following events: A-> coin lands on heads B-> die lands on a "1" a. How many unique outcomes...
A game of chance offers the following odds and payoffs:
A game of chance offers the following odds and payoffs:Probability         Payoff0.2                      $5000.4                        1000.4                 0a) What is the expected cash payoff?b) Suppose each play of the game costs $100. What is the expected rate of return?c) What is the variance of the expected returns?d) What is the standard deviation of the expected returns?
A game of chance offers the following odds and payoffs. Each play of the game costs...
A game of chance offers the following odds and payoffs. Each play of the game costs $100, so the net profit per play is the payoff less $100. Probability Payoff Net Profit 0.10 $700 $600 0.50 100 0 0.40 0 –100 a-1. What is the expected cash payoff? (Round your answer to the nearest whole dollar amount.) a-2. What is the expected rate of return? (Enter your answer as a percent rounded to the nearest whole number.) b-1. What is...
Suppose a casino offers a game that costs $20 to play. The game works as follows:...
Suppose a casino offers a game that costs $20 to play. The game works as follows: the dealer will give you a hand (randomly chosen from a regular 52 card deck) of four cards, and you will then win 10X dollars, where X is the number of aces in your hand. What are the expected winnings for this game? The expected profit? Is this a fair game?
A carnival game offers a $100 cash prize for a game where the player tries to...
A carnival game offers a $100 cash prize for a game where the player tries to toss a ring onto one of many pegs. Alex will play the ring toss game five times, with an 8% chance of making any given throw. What is the probability that Alex tosses one of the five rings onto a peg? What is the probability that Alex tosses more than one of the five rings onto a peg? If Alex tossed five rings again...
Suppose a game piece is initially at the starting point of the board. We repeatedly flip...
Suppose a game piece is initially at the starting point of the board. We repeatedly flip a fair coin and the piece is moved one step left or right on the board depending on whether the coin shows heads or tails. Approximate the probability that after 400 flips the piece is no more than 10 steps away from the starting position. Assume the board is infiniteso you don’t need to worry about hitting the edge. The answer of Probability equal...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT