Question
A game of chance offers the following odds and payoffs. Each play of the game costs $100, so the net profit per play is the
A game of chance offers the following odds and payoffs. Each play of the game costs $100, so the net profit per play is the payoff less $100.
Probability | Payoff | Net Profit |
---|---|---|
0.10 | $700 | $600 |
0.50 | 100 | 0 |
0.40 | 0 | 100 |
a-1. What is the expected cash payoff?
Note: Round your answer to the nearest whole dollar amount.
a-2. What is the expected rate of return?
Note: Enter your answer as a percent rounded to the nearest whole number.
b-1.What is the variance of the expected returns?
Note: In the calculation, use the percentage values, not the decimal values for the rates of return. Do not round intermediate calculations. Round your answer to the nearest whole number.
b-2.hat is the standard deviation of the expected returns?
Note: Enter your answer as a percent rounded to 2 decimal places.
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