Bob plays a game in which a dice is rolled until an odd number occurs. Bob wins 10 – x dollars if x rolls are needed for x = 1,2 but loses k = 10 dollars if x > 2. Calculate the probability that Bob loses money in this game. Calculate the expected value Bob’s winnings. Calculate the variance of Bob’s winnings. What should be the value of k for the game to be fair, i.e. for the expected value of the money earned to be equal to 0?

Bob plays a game in which a dice is rolled until an odd number occurs. Bob wins 10 – x dollars if x rolls are needed for x = 1,2 but loses k = 10 dollars if x > 2. Calculate the probability that Bob loses money in this game. Calculate the expected value Bob’s winnings. Calculate the variance of Bob’s winnings. What should be the value of k for the game to be fair, i.e. for the expected value of the money earned to be equal to 0?

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter9: Counting And Probability

Section9.3: Binomial Probability

Problem 2E: If a binomial experiment has probability p success, then the probability of failure is...

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