Question

Suppose that you bet $5 on each of a sequence of 50 independent fair games. Use the central limit theorem to approximate the probability that you will lose more than $75.

Answer 1

Answer:

chances chances of happening = 0.0119

Step-by-step explanation:

given data

bet =  $5

independent fair games = 50

solution

we will think game as the normal distribution

so here  mean is will be

mean = $\frac{50}{2}$

mean = 25

and standard deviation will be

standard deviation = $\sqrt{50*0.5*0.5}$

standard deviation = 3.536

so

we have to lose 33 out of 50 time for lose more than $75

so as chance of doing things z score is

z score = $\frac{33-25}{3.536}$

z score  = 2.26

so from z table

chances chances of this happening = 0.0119