, 12.11.2019 04:31, Byanka032801

# 3.36 european roulette. the game of european roulette involves spinning a wheel with 37 slots: 18 red, 18 black, and 1 green. a ball is spun onto the wheel and will eventually land in a slot, where each slot has an equal chance of capturing the ball. gamblers can place bets on red or black. if the ball lands on their color, they double their money. if it lands on another color, they lose their money. (a) suppose you play roulette and bet \$3 on a single round. what is the expected value and standard deviation of your total winnings? (b) suppose you bet \$1 in three different rounds. what is the expected value and standard deviation of your total winnings? (c) how do your answers to parts (a) and (b) compare? what does this say about the riskiness of the two games?

### Other questions on the subject: Business

Amber mining and milling, inc., contracted with truax corporation to have constructed a custom-made lathe. the machine was completed and ready for use on january 1, 2018. amber paid for the lathe by issuing a \$500,000, three-year note that specified 6% interest, payable annually on december 31 of each year. the cash market price of the lathe was unknown. it was determined by comparison with similar transactions that 8% was a reasonable rate of interest. (fv of \$1, pv of \$1, fva of \$1, pva of \$1, fvad of \$1 and pvad of \$1) (use appropriate factor(s) from the tables provided.) required: 1-a. complete the table below to determine the price of the equipment. 1-b. prepare the journal entry on january 1, 2018, for amber mining and milling's purchase of the lathe. 2. prepare an amortization schedule for the three-year term of the note. 3. prepare the journal entries to record (a) interest for each of the three years and (b) payment of the note at maturity.