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You are playing the new Lemon Game at Vegas. There are 3 windows in the slot machine. Window 1 displays only one of two choices: lemon or strawberry. Window 2 can display three choices: lemon, strawberry, or blueberry. Window 3 can display three choices: lemon, papaya, or cherry. Windows spin randomly and independent from each other. To win $1 you must have one lemon showing. To win $2, you must have two lemons, and to win the $5 jackpot, you must have all windows showing lemons.
Using a tree diagram, determine the sample space.
Determine the probability distribution. Let the random variable X represent the number of lemons displayed during one spin.
Calculate the mean and standard deviation of the distribution.
In four sentences or less, would you want to play this game if it cost $.50 per spin? Justify your answer using the expected value approach.
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A Business Planning Seminar Class
1. The expression for the MP curve is. 2. The expression for the AD curve is: 3. Assume that π=1.5%. The real interest rate r is __%. 4. The equilibrium level of output is?
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