Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In a lottery, you bet on seven-digit number between 0000000 and 1111111. For a $1 bet, you win $500,000 if you are correct. The mean

In a lottery, you bet on seven-digit number between 0000000 and 1111111. For a $1 bet, you win $500,000 if you are correct. The mean and standard deviation of the probability distribution for the lottery winnings are u=0.05 (that is,5 cents) and σ=200.00 Joe figures that if he plays enough times every day, eventually he will strike it rich, by the law of large numbers. Over the course of several years, he plays 1 million times. 

Let x denote his average winnings.

a. Find the mean and standard deviation of the sampling distribution of x

b. About how likely is it that Joe's average winnings exceed $1, the amount he paid to play each time? 

Use the central limit theorem to find an approximate answer.

Step by Step Solution

3.40 Rating (162 Votes )

There are 3 Steps involved in it

Step: 1

a the mean of the sampling distribution of 005 200 020 th... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistics The Art And Science Of Learning From Data

Authors: Alan Agresti, Christine A. Franklin

3rd Edition

9780321849281, 321755944, 321849280, 978-0321755940

More Books

Students also viewed these Accounting questions

Question

How can a firm suppress problem recognition?

Answered: 1 week ago

Question

Confirm that E[ t |F t 1 ] = 0

Answered: 1 week ago