Question

Supposethatyoubet$5oneachofasequenceof50independentfairgames. Usethecentrallimittheorem to approximate the probability that you will lose more than $75

Answer 1

Answer:

0.119

Explanation:

50 independent fair games

Mean will be 50/2 = 25

Standard deviation of the loosing probability is :

$\sqrt{50*0.5*0.5}$ * 10 = 33.536

we have to loose 33 times out of 50 games.

To find the approximate probability we use z- value table.

z value =  $\frac{33-25}{3.35}$

z - value = 2.2659

Looking at the z-value table we get 0.119.