Suppose That Someone Offers You a Job at a Casino

question 44

Essay

Suppose that someone offers you a job at a casino in Las Vegas with the following two options: you can either earn $68.00 per night working behind a change counter,or you can serve cocktail drinks.If the latter is chosen,your earnings potential is based on the number of patrons frequenting the casino each night.You can make $100 in tips on a busy night,$75 in tips on a normal night,and $50 in tips on a slow night.The probabilities of a busy,normal,or slow night are,respectively,0.4,0.3,and 0.3.
a.Which option maximizes your long-run average nightly earnings? Use Crystal Ball with 1000 replications.
b.How would your answer change if you can earn $85 per night working behind a counter?

---

Definitions:

Reptiles

Cold-blooded vertebrates that have scales, breathe air, and lay eggs, including snakes, lizards, crocodiles, and turtles.

Bohr Effect

A physiological phenomenon where decreases in blood pH or increases in carbon dioxide concentration lead to a reduction in the affinity of hemoglobin for oxygen.

Oxygen-Hemoglobin Dissociation

The process by which oxygen binds to hemoglobin in the lungs and is released to tissues, influenced by factors like pH and temperature.

Chloride Shift

The chloride shift is a process during which chloride ions move from the blood plasma into red blood cells as bicarbonate ions leave, helping maintain ionic balance in blood during gas exchange.