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(Solved): Suppose that you bet $5 on each of a sequence of 50 independent fair games. (a) For each game, what ...



Suppose that you bet $5 on each of a sequence of 50 independent fair games. (a) For each game, what are the expectation and the variance of the outcome? Hint: X1,...,X50 take values of−5 with probability 0.5 and 5 with probability 0.5. (b) Use the central limit theorem to approximate the probability that you will lose more than $75.



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