A modified roulette wheel has 40 slots. One slot is 0, another is 00, and the others are numbered 1 through 38 respectively. You are placing a bet that the outcome is an odd number. (In roulette, 0 and 00 are neither odd nor even.) Question: How much profit should you make on the $12 bet if you could somehow convince the casino to change its payoff odds so that they are the same as the actual odds against winning?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
Please show exact calculation so I can see how the final answer is calculated & I can do using different number. Thank you
A modified roulette wheel has 40 slots. One slot is 0, another is 00, and the others are numbered 1 through 38 respectively. You are placing a bet that the outcome is an odd number. (In roulette, 0 and 00 are neither odd nor even.)
Question: How much profit should you make on the $12 bet if you could somehow convince the casino to change its payoff odds so that they are the same as the actual odds against winning?
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