A casino knows that people play slot machines in hopes of hitting the jackpot but that most of them lose their dollar. Suppose that a certain slot machine pays out an average of $0.95 with a standard deviation of $105. a) Why is the standard deviation so large? b) If the machine is played 5 times, what are the mean and standard deviation of the casino's profit? c) If gamblers play this machine 1000 times in a day, what are the mean and standard deviation of the casino's profit? d) Is the casino likely to be profitable?

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.

Sam1s Sam1s · Answer 2 · 2022-03-22T14:29:15+01:00

Part A) Gamblers lose a relatively small amount most of the time but there are a few large pay-outs

Part B) if person play 5 times, casino's profit mean is $0.04and the standard deviation i$268.33.

Part C) If gamblers play this machine 1000 times in a day, the mean is $80 and the standard deviation is $3794.3.

Part D) Yes, Casino likely to be profitable.

Casino

Part A:

The standard deviation is so huge since, Players lose a generally little sum most of the time but there are some huge pay-outs

Part B:

If person play 5 times, the mean of the casino's profit is:

Mean :

E(x) = ( 1 - $0.92) x 5

E(x) = $0.04

Standard deviation:

S(3x) = √120² x 5

S(3x) = $268.33

Part C:

If gamblers play this machine 1000 times in a day is :

Mean:

E(x) = ( 1 - $0.92) x 1000

E(x) = $80

Standard deviation:

S(x) = √120² x 1000

S(x) = $3794.3

Part D:

The casino is likely to be beneficial due to the normal pays out winning big stake in space machines happen exceptionally less in $0.29.

So more individuals play winning big stake in space machines in casino, the casino will gotten to be more profitable.

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