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Week2HW - QRM EC315 Homework Week 2 Chapter 6 question 36...

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Unformatted text preview: QRM EC315 Homework Week 2 Chapter 6 question 36 Divisions Payout(x) Odds Probability(x) xP(X) 5 + PB $50,000,000 146107962 0.000000006844 $0.34220 match 5 $200,000 3563609 0.000000280614 $0.05612 4 + PB $10,000 584432 0.000001711060 $0.01711 match 4 $100 14255 0.000070145903 $0.00701 3 + PB $100 11927 0.000083836351 $0.00838 match 3 $7 291 0.003424657534 $0.02397 2 + PB $7 745 0.001340482574 $0.00938 1 + PB $4 127 0.007812500000 $0.03125 0 + PB $3 69 0.014285714286 $0.04286 Divisions x - mean (x - mean)^2 ( x - mean)^2*P(x) 5 + PB $49,999,999.46 2499999946170530.0000 17109999.6316 match 5 $199,999.46 39999784682.3902 11224.4996 4 + PB $9,999.46 99989234.3948 171.0876 match 4 $99.46 9892.6308 0.6939 3 + PB $99.46 9892.6308 0.8294 match 3 $6.46 41.7536 0.1430 2 + PB $6.46 41.7536 0.0560 1 + PB $3.46 11.9834 0.0936 0 + PB $2.46 6.0600 0.0866 Mean payout = $0.53829 Standard deviation of the payout = $4137.8010 If the cost of a ticket is taken into account, then the mean is a loss of $0.46171 and the standard deviation If the cost of a ticket is taken into account, then the mean is a loss of $0....
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Week2HW - QRM EC315 Homework Week 2 Chapter 6 question 36...

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