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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. (there are 4 answers total)
Probability | Payoff | Net Profit |
0.10 | $800 | $700 |
0.50 | 100 | 0 |
0.40 | 0 | ?100 |
a-1. | What is the expected cash payoff? |
Expected cash payoff | ?$ |
a-2. | What is the expected rate of return? |
Expected rate of return | ?% |
b-1. | Calculate the variance of this rate of return. (Round your answer to the nearest whole number.) |
Variance ? |
b-2. | Calculate the standard deviation of this rate of return. (Round your answer to the nearest whole percent.) |
Standard deviation | ?% |
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