Question
The expected payoff of casino roulette wheels is $0.0526 per dollar of bet. Its standard deviation is $5.76. Suppose 3 million similar independent bets are
The expected payoff of casino roulette wheels is $0.0526 per dollar of bet. Its standard deviation is $5.76. Suppose 3 million similar independent bets are placed throughout the casino in a typical month. (a) What is the 95% confidence interval for the forecasted monthly profit of the casino? (b) If the bets are not independent, would the confidence interval be wider or narrower? Explain briefly
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Technical Analysis Of The Financial Markets
Authors: John J. Murphy
1st Edition
0735200661, 978-0735200661
