Concept explainers
Sagittarius Casino
The Sagittarius Casino's strategy for establishing a competitive advantage over its competitors is to create unique and interesting new games for its customers to play. Sagittarius management feels it is time for the casino to once again introduce a new game to excite its customer base, and Sagittarius' s Director of Research and development, Lou Zerbit, believes he and his staff have developed a new game that will accomplish this goal. The game, which they have named POSO! (an acronym for Payouts On Selected Outcomes), is to be played in the following manner. A player will select two different values from 1, 2, 3, 4, 5, and 6. Two dice are then rolled. If the first number the player selected comes up on at least one of the two dice, the player wins $5.00; if the second number the player selected comes up on both of the dice, the player wins $10.00. If neither of these
For example, suppose a player fills out the following card for one game of POSO!
When the two dice are rolled, if at least one die comes up 4 the player will win $5.00, if both dice come up 2 the player will win $10.00, and if any other outcome occurs the player wins nothing.
Managerial Report
Sagittarius management now has three questions about POSO! These questions should be addressed in your report.
3. Sagittarius managers want to take in more than they pay out on average for a game of POSO!. Furthermore, casinos such as Sagittarius are often looking for games that provide their gamers with an opportunity to play for a small bet, and Sagittarius management would like to charge players $2.00 to play one game of POSO!. What will be the expected profit earned by Sagittarius Casino on a single play if a player has to pay $2.00 for a single play of POSO!? Will Sagittarius Casino expect to earn or lose money on POSO! if a player pays $2.00 for a single play? What is the minimum amount Sagittarius Casino can charge a player for a single play of POSO! and still expect to earn money?
Want to see the full answer?
Check out a sample textbook solutionChapter 5 Solutions
Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
- 5. A coffee merchant sells three blends of coffee. A bag of the house blend contains 300 grams of Colombian beans and 200 grams of French roast beans. A bag of the special blend contains 200 grams of Colombian beans, 200 grams of Kenyan beans, and 100 grams of French roast beans. A bag of the gourmet blend contains 100 grams of Colombian beans, 200 grams of Kenyan beans, and 200 grams of French roast beans. The merchant has on hand 30 kilograms of Colombian beans, 15 kilograms of Kenyan beans, and 25 kilograms of French roast beans. If he wishes to use up all of the beans, how many bags of each type of blend can be made?arrow_forwardToys Everyday must decide which course of action to follow in promoting a new Gizmo toy it has developed. Initially management must decide whether to market this toy or to conduct a test marketing programme. After test marketing the Gizmo, management must decide whether to abandon it or distribute it nationally. A national success will (NS) will increase profits by $1,000,000 and a failure (NF) will reduce profits by $200,000. Abandoning the product will not affect profits. The test marketing will cost the company a further $20,000. Decision Alternatives NS(NATIONAL | NF(NATIONAL FAILURE) SUCCESS) Market 1000,000 ($200,000) Abandon Prior Probabilities P(S) = 0.45 P(F) = .55 Conditional probability for a given state of nature where test results are either Favourable (F) P(U|NS) = 0.12; or negative (U): P(F]NS) = 0.88; P(U|NF) = 0.82 P(F|NF) = 0.18; After you have computed the revised probabilities round to two decimal places a) Construct the appropriate decision tree to help Toys make…arrow_forwardStudy techniques Your mathematics test is tomorrow and will cover the following topics: game theory, linear programming, and matrix algebra. You have decided to do an "all-nighter" and must determine how to allocate your 8 hours of study time among the three topics. If you were to spend the entire 8 hours on any one of these topics (thus using a pure strategy), you feel confident that you would earn a 90% score on that portion of the test but would not do so well on the other topics. You have come up with the following table, where the entries are your expected scores. (The fact that linear programming and matrix algebra are used in game theory is reflected in these numbers.) Test Game Linear Matrix Your Strategies Theory Programming Algebra Game Theory 90 80 60 Linear Programming 50 90 50 Matrix Algebra 70 30 90 You have been told that the test will be weighted as follows: game theory: 25%; linear programming: 50%; matrix algebra: 25%. (a) If you spend 25% of the night on game theory,…arrow_forward
- Keeping track of the players - Gaile works for a software company that runs a massive multi-player online role-playing game. The game runs on two different servers, one located in North America (NA) and the other in Europe (EU). At any given time, players can be playing in one of three game modes: Open World, Story Instance, or Player v. Player. At 10:00 AM Pacific time on a Sunday, Gaile downloaded a list of players who were online at that time, then selected a group of 1130 of those players and recorded the game mode they were playing at that time and the server they were playing on. The results are summarized in the table below. Server Open World Story Instance Player v. Player Total NA 412 123 188 723 EU 167 85 155 407 Total 579 208 343 1130 Suppose Gaile randomly selects one of the 1130 players represented in the table above. Round all answers to 4 decimal places. 1. What is the probability the selected player was playing in Open World mode? 2. What is the chance the selected…arrow_forwardPART 4: BALLOON DARTS (TWO-WAY TABLES) You have decided to place some camival games throughout the park to increase revenue. One of the games is balloon darts. The dartboard is covered with solid, striped, and polka dot balloons. In the space below, color your dartboard with the three balloon types... any way you'd like! There doesn't have to be the same amount of each style, just color them any way you choose. The first few have been done for you. QOOOO OOO O O O O Q Q Q 888 388 If a person pops a polka dot balloon with a dart, they win a prize. Let the first row of balloons represent the ones that were popped by your guests. Let the second row of balloons represent the ones that were not popped by your guests. Complete the two-way table below. Type of Balloon Number of times Popped Solid Polka Dot Striped Total Number of times NOT popped Total D • USE THE ABOVE INFORMATION TO ANSWER THE QUESTIONS BELOW: (Express your answer as a fraction, decimal, and percent) 1) What is the…arrow_forwardAdvertising You are the marketing director for a company that manufactures bodybuilding supplements and you are planning to run ads in Magazine A and Magazine B. Based on readership data, you estimate that each one-page ad in Magazine A will be read by 750,000 people in your target group, while each one-page ad in Magazine B will be read by 225,000 people in your target group. You would like your ads to be read by at least 5 million people in the target group, and, to ensure the broadest possible audience, you would like to place at least three full-page ads in each magazine during the year. Draw the feasible region showing how many pages you can purchase in each magazine. Find the corner points of the region. (Place Magazine A on the x-axis and Magazine B on the y-axis.) y (x, y) = (x, y) = ( | 20 15 10 5 y 20 15 10 5 5 Solution Set 10 15 20 Solution Set 5 10 15 20 X X y 20 15 10 5 y 20 15 10 5 5 Solution Set 10 15 20 Solution Set 5 10 15 20 X X Ⓡ Ⓒ Find the corner points of the…arrow_forward
- Advertising You are the marketing director for a company that manufactures bodybuilding supplements and you are planning to run ads in Magazine A and Magazine B. Based on readership data, you estimate that each one-page ad in Magazine A will be read by 750,000 people in your target group, while each one-page ad in Magazine B will be read by 150,000 people in your target group. You would like your ads to be read by at least 5 million people in the target group, and, to ensure the broadest possible audience, you would like to place at least four full-page ads in each magazine during the year. Draw the feasible region showing how many pages you can purchase in each magazine. Find the corner points of the region. (Place Magazine A on the x-axis and Magazine B on the y-axis.) The x y-coordinate plane is given. There are 3 lines and a region labeled "solution set" on the graph. The first line enters the window in the first quadrant, goes down and right, passes through the approximate…arrow_forwardnot use ai pleasearrow_forwardA game consists of rolling a colored die with 3 red sides, 2 green sides, and one blue side. A roll of a red loses. A roll of a green pays $3.00. A roll of blue pays $8.00. The charge to play the game is $3.00. Would you play the game? Why or why not? Yes you should play. On any given roll the cost to play exceeds the amount you are expected to win. Yes you should play. On any given roll your expected value exceeds the amount that it cost to play the game. O No you should not play. On any given roll the cost to play exceeds the amount you are expected to win, O No you should not play. On any given roll your expected value exceeds the amount that it cost to play the game. O Yes you should play. You have a chance to win $8 and you only had to pay $2 to play.arrow_forward
- SITUATIONAL ANALYSIS: Gardening has always been touted as a relaxing recreational activity that can provide great personal rewards. During this time, when many people are working at home and students are learning at home, gardening can be a positive family-inclusive activity to adopt. Liza and her family made planting a habit and a family bonding. On a Saturday morning, Liza and her older brother are tasked to plant a vegetables. Liza take 2 hours to plant 50 eggplant seeds. Edgar takes 3 hours to plant 45 tomato seeds. Working together, how long should it take them to plant 200 vegetables? Conclude whether if it's more efficient to work together or to work individually at their own pace.arrow_forwardtab shift While making up his schedule for spring semester, Tom complains that he doesn't have very many choices of schedule because of the general education requirements he has to meet. His advisor tells Tom that he has to take one course from each of English (8 choices), History (6 choices), Math/Stats (4 choices), Computer Science (6 choices), and general Science (4 choices). Does Tom have a legitimate gripe? caps lock (a) If every possible course is available at the time he's registering, how many possible schedules can he choose from (disregarding when the classes meet)? Tom can choose from possible schedules. (b) In an unprecedented effort to make the general education requirements more accessible, the dean of Tom's college decides to double the number of acceptable courses in each of those five areas. What effect does this have on the number of possible schedules? control Tom can choose from possible schedules when the number of acceptable courses are doubled. The number of…arrow_forwardAdvertising You are the marketing director for a company that manufactures bodybuilding supplements and you are planning to run ads in Sports Illustrated and GQ Magazine. Based on readership data, you estimate that each one-page ad in Sports Illustrated will be read by 610,000 people in your target group, while each one-page ad in GQ will be read by 190,000. You would like your ads to be read by at least 3 million people in the target group and, to ensure the broadest possible audience, you would like to place at least three full-page ads in each magazine. Draw the feasible region that shows how many pages you can purchase in each magazine. (Let x be the number of full-page ads in Sports Illustrated and let y be the number of full-page ads in GQ Magazine.) -30 -20 -10 O Solution Set smaller x-value y larger x-value 30 20 10 -10 -20 -30 (x, y) = 10 (x, y) = 20 30 X -30 - 20 -10 y 30 20 10 -10 -20 Solution Set -30 10 Find the corner points of the region. (Round each coordinate to the…arrow_forward
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillAlgebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage LearningLinear Algebra: A Modern IntroductionAlgebraISBN:9781285463247Author:David PoolePublisher:Cengage Learning
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage