A Poker Player Is Dealt Poor Hands for Several Hours

question 30

Multiple Choice

A poker player is dealt poor hands for several hours. He decides to bet heavily on the last hand of the evening on the grounds that after many bad hands he is due for a winner.

• A) He's right, because the winnings have to average out.
• B) He's wrong, because successive deals are independent of each other.
• C) He's right, because successive deals are independent of each other.
• D) He's wrong, because his expected winnings are $0 and he's below that now.

---

Definitions:

Output

The amount of goods or services produced by a person, machine, factory, or system over a certain period.

Production Function

A mathematical model that describes the relationship between inputs used in production and the output of goods or services.

Isoquant

A curve that represents all combinations of inputs that yield the same level of output, illustrating the production possibilities of a firm.

Output

The total amount of goods or services produced by a company, industry, or economy.