14) A casino game has three possible winnings, $15, $10, and $5, each being twice as likely as the one before it. Player's don't win anything 65% of the time. i) What are the chances of winning $15 on one play? ii) If it costs $3 to play this game, how much does a player expect to lose on average? (Find the expected profit, which will be negative. This is the player's loss).

MATLAB: An Introduction with Applications
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14) A casino game has three possible winnings, $15, $10, and $5, each being twice as likely as the one before it. Players don’t win anything 65% of the time. 

i) What are the chances of winning $15 on one play?

ii) If it costs $3 to play this game, how much does a player expect to lose on average? (Find the expected profit, which will be negative. This is the player’s loss).
Transcribed Image Text:14) A casino game has three possible winnings, $15, $10, and $5, each being twice as likely as the one before it. Players don’t win anything 65% of the time. i) What are the chances of winning $15 on one play? ii) If it costs $3 to play this game, how much does a player expect to lose on average? (Find the expected profit, which will be negative. This is the player’s loss).
Expert Solution
Step 1

Consider the probabilities of winnings of  $15, $10, and $5 as p1p2 and p3 respectively.

It is stated that each value is twice as likely as the previous value, i.e., it is interpreted that: p2=2p1 and p3=2p2.

It is also known that 65% of the time players win nothing.

 

 

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