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A casino patron will continue to make \(5bets on red in roulette until she has won 4of these bets.

  1. What is the probability that she places a total of 9bets?
  2. What are her expected winnings when she stops?

Remark: On each bet, she will either win\)5with probability1838or lose$5with probability2038.

Short Answer

Expert verified
  1. The probability she places all the bet is83919310195919
  2. The expected winnings when she stop is -209

Step by step solution

01

Given Information (Part a)

A casino patron will continue to make $5bets on red in roulette until she has won 4 of these bets.

02

Explanation (Part a)

We have to find the probability that she places a total of bets.

Either she can $5with probability 1838=919or she can lose $5with probability 1038=1019

The patron will continue until she has won all the 4bets.

So out of 9bets, she will win the last bet.

So out of remaining 8bets, she has to win 3bets.

Therefore, the probability she places all the bets is:

localid="1646921037023" 83919310195919

03

Final Answer (Part a)

The probability she places all the bets is:83919310195919

04

Given Information (Part b)

A casino patron will continue to make $5bets on red in roulette until she has won 4of these bets.

05

Explanation (Part b)

If Wis his final winnings and xis the number of bets he makes, then since he would have won 4bets and lost x-4bets, it follows that

W=20−5(x−4)=40−5x

Hence,

E(w)=40−5E[x]

width="108">=40−54919

=40−519×49

localid="1646669407719" =−209

Therefore, the expected winnings when she stop is-209

06

Final Answer (Part b)

The expected winnings when she stop is-209

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