Recall the set of payoffs in a game of chuck-a-luck:
• You win one times your bet if your number appears on one die.
• You win two times your bet if your number appears on two dice.
• You win three times your bet if your number appears on three dice
• You lose your bet if your number appears on none of the dice.
You play 50 consecutive games of chuck-a-luck, betting 5 chips in each of the
first 30 games, and 10 chips in each of the remaining 20 games. By the end
of these games you'll expect to:
(Hint: You might want to draw a tree diagram to figure this one out. Note: you
can win or lose to 1/10th of a chip.)
A. break even
B. win 20.4 chips
c. lose 19.5 chips
D. Iose 27.3 chips
O E. lose 34.1 chips
