The Law of Averages vs. The Law of Large ,statistics homework help

The Law of Averages vs. The Law of Large ,statistics homework help

Maxine is a little less adventurous and hopes to win more often (and lose less often) so she repeatedly places her $1 bet on red (which has more ways to win but a winning payoff of only 1:1, $1 won for every $1 bet). Should she expect to break even by playing this way since the payoff is 1:1? Does she have a 50/50 chance of winning each time the wheel is spun? What is the expected net gain? Explain.

c) Recall last week’s discussion on The Law of Averages vs. The Law of Large Numbers and combine that with the questions that you just answered. What do you think are some of the motivations behind gambling (that is, how do people justify gambling)?