Two gamblers play a version of roulette with a wheel as shown in the file P04_36.xlsx. Each gambler places four bets, but their strategies are different, as explained below. For each gambler, use the rules of probability to find the distribution of their net winnings after four bets. Then find the mean and standard deviation of their net winnings. The file gets you started. a. Player 1 always bets on red. On each bet, he either wins or loses what he bets. His first bet is for $10. From then on, he bets $10 following a win, and he doubles his bet after a loss. (This is called a martingale strategy and is used frequently at casinos.) For example, if he spins red, red, not red, and not red, his bets are for $10, $10, $10, and $20, and he has a net loss of $10. or if he spins not red, not red, not red, and red, then his bets are for $10, $20, $40, and $80, and he has a net gain of $10. b. Player 2 always bets on black and green. On each bet, he places $10 on black and $2 on green. if red occurs he loses all $12. If black occurs, he wins a net $8 ($10 gain on black, $2 loss on green). If green occurs, he wins a net $50 ($10 loss on black, $60 gain on green).
Please use the URL below to access the file referenced above. Once at the URL page, select:
Student Downloads>Problem Files Zip Drive>Chapter 4> File: P04_36.xlsx
URL: Book Companion Site
Thank you!
Please use the URL below to access the file referenced above. Once at the URL page, select:
Student Downloads>Problem Files Zip Drive>Chapter 4> File: P04_36.xlsx
URL: Book Companion Site
Thank you!
