Decision Theory Marc Taylor plans to place 200 bets of $5 each on a game at the Mirage

Chapter 6, Problem 25

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Decision Theory Marc Taylor plans to place 200 bets of $5 each on a game at the Mirage casino in Las Vegas. a. One strategy is to bet on the number 7 at roulette. A win pays off with odds of 35:1 and, on any one spin, there is a probability of 1 / 38 that 7 will be the winning number. Among the 200 bets, what is the minimum number of wins needed for Marc to make a profit? Find the probability that Marc will make a profit. b. Another strategy is to bet on the pass line in the dice game of craps. A win pays off with odds of 1:1 and, on any one game, there is a probability of244 / 495 that he will win. Among the 200 bets, what is the minimum number of wins needed for Marc to make a profit? Find the probability that Marcwill make a profit.c. Based on the preceding results, which game is the better investment: the roulette game from part (a) or the craps game from part (b)? Why?