A Slot Machine at a Casino Pays Out an Average

question 82

Multiple Choice

A slot machine at a casino pays out an average of $0.90,with a standard deviation of $120.It costs a dollar to play.If gamblers play this machine 6,969,600 times in a month,what is the probability that the casino will come out ahead? Assume that the casino's total profit follows a Normal model.

• A)0.023
• B)0.014
• C)0.977
• D)0.955
• E)0.986

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Definitions:

Monopolistically Competitive

An economic setup in which a variety of businesses market goods that are comparable yet distinct, enabling them to have some market control and differentiate their offerings.

Guaranteed A Profit

An assurance that an investment or business endeavor will yield a positive return or profit.

Long Run

In economics, a period in which all inputs, including capital, can be fully adjusted, allowing firms to change their scale of operation.

Economic Profit

An economic profit occurs when the revenue generated from a business activity exceeds both the explicit and implicit costs associated with that activity.