Are the casinos really gambling when we place a bet against them? Explain
Added by Sean J.
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Gambling involves risking money or valuables on an outcome that is largely determined by chance, with the hope of winning more than what was originally staked. Show more…
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In the New Jersey and Nevada gaming casinos, craps is a popular gambling game. One of the many bets available is the "Hard-way 8." A $1 bet in this fashion will win the player $4 if in the game the pair of dice come up 4 and 4 before one of the other ways of totaling 8. For a $1 bet, what is the expected result?
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When playing roulette at the Venetian casino in Las Vegas, a gambler is trying to decide whether to bet $\$ 5$ on the number 27 or to bet $\$ 5$ that the outcome is any one of these five possibilities: $0,00,1,2,3 .$ From Example $8,$ we know that the expected value of the $\$ 5$ bet for a single number is $-26 \%$. For the $\$ 5$ bet that the outcome is $0,00,1,2,$ or $3,$ there is a probability of $5 / 38$ of making a net profit of $\$ 30$ and a $33 / 38$ probability of losing $\$ 5 .$. a. Find the expected value for the $\$ 5$ bet that the outcome is $0,00,1,2,$ or 3 b. Which bet is better: a $\$ 5$ bet on the number 27 or a $\$ 5$ bet that the outcome is $0,00,1,2,$ or 3? Why?
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