A game popular in Nevada gambling casinos is Keno, which is played as follows: Twenty numbers are selected at random by the casino from the set of numbers 1 through 80. A player can select from 1 to 15 numbers; a win occurs if some fraction of the player’s chosen subset matches any of the 20 numbers drawn by the house. The payoff is a function of the number of elements in the player’s selection and the number of matches. For instance, if the player selects only I number, then he or she wins if this number is among the set of 20, and the payoff is $2.20 won for every dollar bet. (As the player’s probability of winning in this case is 1 4 , it is clear that the “fair” payoff should be $3 won for every $1 bet.) When the player selects 2 numbers, a payoff (of odds) of $12 won for every $1 bet is made when both numbers are among the 20. a. What would be the fair payoff in this case? Let p n , k , denote the probability that exactly of the n, numbers chosen by the player are among the 20 selected by the house. b. Compute p n , k c. The most typical wager at Keno consists of selecting 10 numbers. For such a bet, the casino pays off as shown in the following table. Compute the expected payoff:
A game popular in Nevada gambling casinos is Keno, which is played as follows: Twenty numbers are selected at random by the casino from the set of numbers 1 through 80. A player can select from 1 to 15 numbers; a win occurs if some fraction of the player’s chosen subset matches any of the 20 numbers drawn by the house. The payoff is a function of the number of elements in the player’s selection and the number of matches. For instance, if the player selects only I number, then he or she wins if this number is among the set of 20, and the payoff is $2.20 won for every dollar bet. (As the player’s probability of winning in this case is 1 4 , it is clear that the “fair” payoff should be $3 won for every $1 bet.) When the player selects 2 numbers, a payoff (of odds) of $12 won for every $1 bet is made when both numbers are among the 20. a. What would be the fair payoff in this case? Let p n , k , denote the probability that exactly of the n, numbers chosen by the player are among the 20 selected by the house. b. Compute p n , k c. The most typical wager at Keno consists of selecting 10 numbers. For such a bet, the casino pays off as shown in the following table. Compute the expected payoff:
Solution Summary: The author explains how to find the expected number of boxes that do not have any balls.
A game popular in Nevada gambling casinos is Keno, which is played as follows: Twenty numbers are selected at random by the casino from the set of numbers 1 through 80. A player can select from 1 to 15 numbers; a win occurs if some fraction of the player’s chosen subset matches any of the 20 numbers drawn by the house. The payoff is a function of the number of elements in the player’s selection and the number of matches. For instance, if the player selects only I number, then he or she wins if this number is among the set of 20, and the payoff is $2.20 won for every dollar bet. (As the player’s probability of winning in this case is
1
4
, it is clear that the “fair” payoff should be $3 won for every $1 bet.) When the player selects 2 numbers, a payoff (of odds) of $12 won for every $1 bet is made when both numbers are among the 20.
a. What would be the fair payoff in this case?
Let
p
n
,
k
, denote the probability that exactly of the n, numbers chosen by the player are among the 20 selected by the house.
b. Compute
p
n
,
k
c. The most typical wager at Keno consists of selecting 10 numbers. For such a bet, the casino pays off as shown in the following table. Compute the expected payoff:
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