Refer to the following table regarding the game of keno. Outcome Probability 9 winning spots 0.0000007243 8 winning spots 0.0000325925 7 winning spots 0.0005916784 6 winning spots 0.0057195580 5 winning spots 0.0326014806 Fewer than 5 winning spots 0.9610539663 (a) Find the expected value of a $1 bet in nine-spot keno if five winning spots pays $1 (but you pay $1 to play, so you actually break even), six winning spots pays $40 (but you pay $1 to play, so your profit is $39), seven pays $350, eight pays $5,500, and nine pays $20,000. (Round your answer to two decimal places.) $ (b) Interpret the expected value. For a large number of plays, you should expect to (---Select--- about $ (enter a positive value) for every dollar you bet.
Refer to the following table regarding the game of keno. Outcome Probability 9 winning spots 0.0000007243 8 winning spots 0.0000325925 7 winning spots 0.0005916784 6 winning spots 0.0057195580 5 winning spots 0.0326014806 Fewer than 5 winning spots 0.9610539663 (a) Find the expected value of a $1 bet in nine-spot keno if five winning spots pays $1 (but you pay $1 to play, so you actually break even), six winning spots pays $40 (but you pay $1 to play, so your profit is $39), seven pays $350, eight pays $5,500, and nine pays $20,000. (Round your answer to two decimal places.) $ (b) Interpret the expected value. For a large number of plays, you should expect to (---Select--- about $ (enter a positive value) for every dollar you bet.
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
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Question
Refer to the following table regarding the game of keno.
| Outcome | Probability |
|---|---|
| 9 winning spots | 0.0000007243 |
| 8 winning spots | 0.0000325925 |
| 7 winning spots | 0.0005916784 |
| 6 winning spots | 0.0057195580 |
| 5 winning spots | 0.0326014806 |
| Fewer than 5 winning spots | 0.9610539663 |
(a) Find the expected value of a $1 bet in nine-spot keno if five winning spots pays $1 (but you pay $1 to play, so you actually break even), six winning spots pays $40(but you pay $1 to play, so your profit is $39), seven pays $350, eight pays $5,500, and nine pays $20,000. (Round your answer to two decimal places.)
(b) Interpret the expected value.
For a large number of plays, you should expect to ---Select--- gain lose about $ (enter a positive value) for every dollar you bet.
Transcribed Image Text:Refer to the following table regarding the game of keno.
Outcome
Probability
9 winning spots
0.0000007243
8 winning spots
0.0000325925
7 winning spots
0.0005916784
6 winning spots
0.0057195580
5 winning spots
0.0326014806
Fewer than 5 winning spots
0.9610539663
(a) Find the expected value of a $1 bet in nine-spot keno if five winning spots pays
$1 (but you pay $1 to play, so you actually break even), six winning spots pays $40
(but you pay $1 to play, so your profit is $39), seven pays $350, eight pays $5,500,
and nine pays $20,000. (Round your answer to two decimal places.)
$
(b) Interpret the expected value.
For a large number of plays, you should expect to (---Select---
about $
(enter a positive value) for every dollar you bet.
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