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    Standard Deviation in a Gambling Scenario

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    Two craps tables collect an average of $500 per hour. One table has a standard deviation of $50 while the other has a standard deviation of $150. What conclusion can be drawn from the data? Normally, would one want a larger of smaller standard deviation? Please discuss and show any work associated with this question. Thanks

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    I would suspect that the one with the larger standard deviation plays larger amounts than the one with smaller standard deviation. It is also ...

    Solution Summary

    The answer clearly explains the concept of risk and return using the example in the question. The answer does an excellent job of explaining the concepts. Overall, a great answer.