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The business of casino gaming. Casino gaming yields over

Statistics for Business and Economics | 12th Edition | ISBN: 9780321826237 | Authors: James T. McClave, P. George Benson, Terry T Sincich ISBN: 9780321826237 51

Solution for problem 100E Chapter 4

Statistics for Business and Economics | 12th Edition

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Statistics for Business and Economics | 12th Edition | ISBN: 9780321826237 | Authors: James T. McClave, P. George Benson, Terry T Sincich

Statistics for Business and Economics | 12th Edition

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Problem 100E

Problem 100E

The business of casino gaming. Casino gaming yields over $35 billion in revenue each year in the United States. In Chance (Spring 2005), University of Denver statistician R. C. Hannum discussed the business of casino gaming and its reliance on the laws of probability. Casino games of pure chance (e.g., craps, roulette, baccarat, and keno) always yield a “house advantage.” For example, in the game of double-zero roulette, the expected casino win percentage is 5.26% on bets made on whether the outcome will be either black or red. (This implies that for every $5 bet on black or red, the casino will earn a net of about 25..) It can be shown that in 100 roulette plays on black/red, the average casino win percentage is normally distributed with mean 5.26% and standard deviation 10%. Let x represent the average casino win percentage after 100 bets on black/ red in double-zero roulette.

a. Find P(x > 0). (This is the probability that the casino wins money.)

b. Find P(5 < x < 15).

c. Find P(x < 1).

d. If you observed an average casino win percentage of -25, after 100 roulette bets on black/red, what would you conclude?

Step-by-Step Solution:

Solution:

Step 1 of 5:

Let, x = the average casino win percentage after 100 bets on black/red in double- zero roulette

Let x follows the Normal distribution with the probability density function is

f(x) =

Where, = 5.26 and

          = 10.


Step 2 of 5

Chapter 4, Problem 100E is Solved
Step 3 of 5

Textbook: Statistics for Business and Economics
Edition: 12
Author: James T. McClave, P. George Benson, Terry T Sincich
ISBN: 9780321826237

The full step-by-step solution to problem: 100E from chapter: 4 was answered by , our top Business solution expert on 07/21/17, 05:42AM. The answer to “The business of casino gaming. Casino gaming yields over $35 billion in revenue each year in the United States. In Chance (Spring 2005), University of Denver statistician R. C. Hannum discussed the business of casino gaming and its reliance on the laws of probability. Casino games of pure chance (e.g., craps, roulette, baccarat, and keno) always yield a “house advantage.” For example, in the game of double-zero roulette, the expected casino win percentage is 5.26% on bets made on whether the outcome will be either black or red. (This implies that for every $5 bet on black or red, the casino will earn a net of about 25..) It can be shown that in 100 roulette plays on black/red, the average casino win percentage is normally distributed with mean 5.26% and standard deviation 10%. Let x represent the average casino win percentage after 100 bets on black/ red in double-zero roulette.a. Find P(x > 0). (This is the probability that the casino wins money.)b. Find P(5 < x < 15).c. Find P(x < 1).d. If you observed an average casino win percentage of -25, after 100 roulette bets on black/red, what would you conclude?” is broken down into a number of easy to follow steps, and 194 words. This textbook survival guide was created for the textbook: Statistics for Business and Economics , edition: 12. Since the solution to 100E from 4 chapter was answered, more than 760 students have viewed the full step-by-step answer. This full solution covers the following key subjects: casino, red, Black, roulette, Win. This expansive textbook survival guide covers 15 chapters, and 1631 solutions. Statistics for Business and Economics was written by and is associated to the ISBN: 9780321826237.

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