In addition to slot machines, casinos must understand the probabilities involved in card games. Suppose you are playing at the blackjack table, and the dealer shuffles a deck of cards. The first card shown is red. So is the second and the third. In fact, you are surprised to see 5 red cards in a row. You start thinking, “The next one is due to be black!”
a) Are you correct in thinking that there’s a higher probability that the next card will be black than red? Explain.
b) Is this an example of the Law of Large Numbers? Explain.