Question

Create your own games fair game with 4 or more outcomes using a binomial situation presented in this lesson (simulated with a spinner or random number) and adjust the point values so that a cost of 10 points would make the game profitable. be sure to justify why it is profitable and explain the process it took to find profitable outcomes.

Answer 1

The game is profitable since the payout is always less than what you earn.

Given that a fair game with 4 or more outcomes using a binomial situation presented in this lesson (simulated with a spinner or random number) and adjust the point values the  so cost of the 10 points will make the game profitable.

Let's discuss the Lucky 7 game

The game is played with the two fair dice rolls.

You put your money on either of 3 things: Above 7, Lucky 7 or below 7

The game below is designed in Excel:

Each cell formula to generate the game:

They are 36 possible outcomes.

7 is the most likely number coming up

6/36=1/6

of the time.

Thus the expected value of the bet is:

(5/12)x₂+(5/12)x₂+(1/6)x₃=26/12

Which, of course, can not make any sense. so, the good idea from the standpoint of the bank is to pay two times on only one of the two possibilities, not a seven, and to give the bet back on the 7. This then gives:

(5/12)x₂+(5/12)x₀+(1/6)x₁=12/12=1

Which is a perfectly fair game.

Of course, the bank wouldn't approve either, so we probably need more restrictions. The way 7 comes out is: 2 ways for each case, (1,5), (2,5), (3,4), then a constraint like not to pay on (5,1) would be added.

Then the 7 returns the money

4/36 = 1/9.

The new case then yields:

(5/12)x₂+(5/12)x₀+(1/9)x₁=34/36=17/18

This says that for every $18 handled in bets the bank expects to pay out $17.

Hence we can say that the game is profitable since the payout is always less than what you earn.

Learn more about fair game from here brainly.com/question/7669874

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