- 10 Marks
QTB – May 2016 – L1 – SB – Q4a – Statistics
This question involves calculating expected returns from a gambler’s game of chance based on different scenarios.
Question
A gambler plays a game of chance in which he has a 60% chance of winning. If he wins, he collects N1,800, but if he loses, he pays N2,300.
Required:
i. Obtain the sample spaces respectively for 12 games and 14 games.
(2 marks)
ii. Calculate his expected returns for 12 games and 14 games.
(6 marks)
iii. Advise the gambler if he initially staked N1,000.
Find Related Questions by Tags, levels, etc.
- Tags: Decision Making, Expected Returns, Game of Chance, Probability
- Level: Level 1
- Topic: Statistics
- Series: MAY 2016
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