Mathematics, 05.05.2020 04:08 nathanbrockdac
Consider a bettering game where you bet $10 and have a probability of 0.45 of getting $20 back ($10 more than you started with) and a probability of 0.55 of getting no money back (losing the initial $10). The net amount of money gained on each trial is a discrete random variable. Note that losing money can be expressed as a negative gain.
(a) Draw a probability mass function representing this random variable.
(b) Find the expected value of this pmf.
(c) If you start with $50, what is the expected amount of money to be left with after playing 20 times?
Answers: 3
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Consider a bettering game where you bet $10 and have a probability of 0.45 of getting $20 back ($10...
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