1. In the game of “craps” two dice are thrown and the outcome of a bet is based on the sum of the two dice. If you bet $
Posted: Mon Jul 11, 2022 11:43 am
1. In the game of “craps” two dice are thrown and the outcome ofa bet is basedon the sum of the two dice. If you bet $1 that the sum is “seven”then you win $4or lose your dollar. The probability that you win is 6/36=1/6, andP(loss) = 5/6.Find a rough range for a) 100 plays, (b) 10, 000 plays. c) Compare100 plays ofthis craps game with the class examples of 100 plays of bet $1 onred, 100 playsof bet $1 on “22” and 100 plays of Keno. Which game would you playand why?
You must show your work when you compute the SD of the box!
[Hint: There are four steps in solving this problem. 1. You mustfirst find the boxmodel, the simplest model has six tickets in the box with some ofthe tickets +4and others –1. You must determine how many of each of those twonumbers arein the box. 2. Next find the Average of the box and the SD of thebox, use “n” not“(n-1)” to compute the SD. 3. Third computeExpected(Winnings)=m·AveOfBoxand SD(Winnings)=√m·SDofBox, where m is the number of plays. 4.Finally theRough Range is Expected(Win)±SD(Win).]
You must show your work when you compute the SD of the box!
[Hint: There are four steps in solving this problem. 1. You mustfirst find the boxmodel, the simplest model has six tickets in the box with some ofthe tickets +4and others –1. You must determine how many of each of those twonumbers arein the box. 2. Next find the Average of the box and the SD of thebox, use “n” not“(n-1)” to compute the SD. 3. Third computeExpected(Winnings)=m·AveOfBoxand SD(Winnings)=√m·SDofBox, where m is the number of plays. 4.Finally theRough Range is Expected(Win)±SD(Win).]