Normal approximation to binomial, central limit theorem- gambling
Not what you're looking for?
1. (A Gambling Example). It costs one dollar to play a certain slot machine in Las Vegas. The machine is set by the house to pay two dollars with probability .45 (and to pay nothing with probability .55). Let Xi be the house's net winnings on the ith play of the machine. Then Sn=?in=1 Xi is the house's winnings after n plays of the machine. Assuming that successive plays are independent, find
a) E(Sn)
b) Var(Sn)
c) The approximate probability that after 10,000 plays of the machine the house's winnings are between 800 and 1100 dollars.
Purchase this Solution
Solution Summary
The expert examines the normal approximation binomial and the central limit theorem for gambling.
Purchase this Solution
Free BrainMass Quizzes
Measures of Central Tendency
This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.
Measures of Central Tendency
Tests knowledge of the three main measures of central tendency, including some simple calculation questions.
Know Your Statistical Concepts
Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.
Terms and Definitions for Statistics
This quiz covers basic terms and definitions of statistics.