Determine the expected payoff of the game

Reference no: EM131568

Suppose the following game. A player rolls two dice. If the outcome on both dice is the same (doubles), the player wins $5. If the sum is 7 or 11, the player wins $3. If neither of these outcomes occurs, the player loses $1.

(a) Prepare a decision tree to illustrate this game. Determine the expected payoff of the game.

(b) Prepare a simulation of this game and simulate 10 games. Use random numbers from row 1 from the appropriate random number table.

Reference no: EM131568

Questions Cloud

Determine the present value of the offers : Determine the present value of each of the three offers and then show which one has the highest present value.

Design a simple digital clock : Design a simple digital clock

Determine the analytical solution for the maximum stress : Determine the analytical solution for the maximum stress of the beam shown; compare with stress results from SolidWorks.

Learn redirecting standard output : Learn redirecting standard output (stdout) to a file using the output redirection operator

Determine the expected payoff of the game : Determine the expected payoff of the game

Determine the probability distribution : Determine the probability distribution for demand using the given data.

Calculate the breakeven point in units : Provide for a general definition of the income statement, its purpose as well as its relation to the Balance Sheet and Cash Flow statements

Benefit-cost analysis : Benefit-cost analysis

Perform the acl test : Perform the ACL test and prepare a report with your conclusions

User Account

All Pages