A popular casino in Windsor estimates that the chance that someone sitting at one of their
Black Jack tables has a 0.35 probability of winning a given hand. Assume that all games
played are independent.
a. Isaac decides to play until his first win, and bets $50 per game. When he wins, he
will win $100. What is Isaac’s expected net gain/loss from this strategy?
b. Suppose the casino has 100 people playing the same strategy as Isaac. What is the
probability that the casino sees no net gain from these 100 people? Hint: recall that
the variance of a geometric random variable is (1 p)=p2:
I am not sure how to find the Variance for part b
Thank you
1 answer