Answer:
A) Gamblers lose a relatively small amount most of the time but there are a few large pay-outs
B) if person play 5 times, the mean of the casino's profit is $0.04
if person play 5 times, the standard deviation of the casino's profit i$268.33
C) If gamblers play this machine 1000 times in a day, the mean is $80
If gamblers play this machine 1000 times in a day, the standard deviation is $3794.3
D) Yes
Step-by-step explanation:
From the details given , it is observed that a casino knows that people play the soft machines in hopes of hitting the jackpot but most of them lose their dollars
There is a certain machine that pays out an average of $0.92 with standard deviation of $120
A) The standard deviation is so large because, Gamblers lose a relatively small amount most of the time but there are a few large pay-outs
B) if person play 5 times, the mean of the casino's profit is
E(x) = ( 1 - $0.92) x 5
= $0.04
if person play 5 times, the standard deviation of the casino's profit is
S(3x) = √120² x 5
= $268.33
C) If gamblers play this machine 1000 times in a day, the mean is
E(x) = ( 1 - $0.92) x 1000
= $80
If gamblers play this machine 1000 times in a day, the standard deviation is
S(x) = √120² x 1000
= $3794.3
D) The casino is likely to be profitable due to the average pays out winning jackpot in slot machines occur very less in $0.29, so more people play winning jackpot in slot machines in casino, the casino will become more profitable.
