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Expected Value and Probability on NormDist

# Expected Value and Probability on NormDist - Help Session...

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Help Session III: Practice Problems 6.50 A blackjack player at Las Vegas Casino learned that the house will provide a free room if play is for four hours at an average bet of \$50. The player’s strategy provides a probability of 0.49 of winning on any one hand and the player knows that there are 60 hands per hour. Suppose the player plays for four hours at a bet of \$50 per hand. a) What is the player’s expected payoff? b) What is the probability that the player loses \$1000 or more? c) What is the probability that the player wins? d) Suppose the player starts with \$1500. What is the probability that the player will go broke? Problem 2 The Asian currency crisis of late 1997 and early 1998 was expected to lead to substantial job losses in the United States as inexpensive imports flooded markets. California was expected to be especially hard hit. The Economic Policy Institute estimated that the mean number of job losses in California would be 126,681 ( St. Petersburg Times , January 24, 1998). Assume the number of jobs lost in California is normally distributed with a standard deviation of 30,000.

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Expected Value and Probability on NormDist - Help Session...

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