Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Operation Research Expert

Linear Programming describeed in this answer

A couple has agreed to attend a "Casino Night" as part of a fundraiser for the local hospital. They do not like to gamble because they believe that gambling is generally a losing proposition. However, for the sake of the charity, they have decided to attend and spend $300 on the games. There will be four games, each involving standard decks of cards.

The first game, Jack in 52, is won if you select the Jack of a particular suit from the deck. The probability of actually doing this is 4 in 52 (4/52 or .0769). Gamblers may place bets of $1, $2, or $4 on this game. If they win, the payouts are $12.00 for a $1 bet, $24.55 for a $2 bet, and $49 for a $4 bet.

The second game, Red Face in 52, is won if you select a red face card (including the Jack, Queen, or King) from the deck. The probability of winning is 6 in 52 (.1154). Again, bets may be placed in denominations of $1, $2, and $4. Payouts are $8.10, $16.35, and $32.50, respectively.

The third game, Face in 52, is won if you select 1 of the 12 face cards from the deck. The probability of winning is 12 in 52 (.2308). Payouts are $4, $8.15, and $16 for $1, $2, and $4 bets.

The last game, Red in 52, is won if you select a red card from the deck. The probability of winning is 26 in 52 (.5). Payouts are $1.80, $3.80, and $7.50 for $1, $2, and $4 bets.

Given that they can find out the expected return or loss for each type of game and level of wager, they have decided to see if they can minimize their expected loss by planning their evening using LP. For ex, a $1 bet in Jack in 52 has a return of $12.00, but there is only a 1 in 13 chance of winning. Therefore, the expected value of the dollar bet is ($12.00*(1/13)) or $.9231. This computes to an expected loss of $1-.9231, or $.0769.

The couple wants to appear generous. Therefore, they will place at least 20 bets (of any value) on each of the four games. Further, they will spend at least $26 on 1-dollar bets, at least $50 on 2-dollar bets, and at least $72 on 4-dollar bets. They will bet exactly the agreed-upon $300. What should be their gambling plan, and what is their expected loss for the evening?

Operation Research, Management Studies

  • Category:- Operation Research
  • Reference No.:- M925101

Have any Question? 


Related Questions in Operation Research

Read and answer following questions with1-2 pages papermike

"Read and answer following questions with1-2 pages paper." Mike graduated from school a few months ago. He applied to various companies and has decided to take a position as a supervisor at a well-known local restaurant. ...

In every organization inputs of some kind services

In every organization, inputs of some kind (services, information, and/or products) are transformed into outputs (services, information, and/or products) on an ongoing, continuous basis, which are of value to internal or ...

A critical review on use of operations research for

A critical review on use of Operations Research for Decision Making

The agile approach towards system analysis and development

The agile approach towards system analysis and development emphasizes iterative and incremental development, in which requirements and solutions evolve through collaboration. Prepare a 1000 word essay on the requirements ...

Consider you need to conduct a business forecastdescribe

Consider you need to conduct a business forecast. Describe your forecast process according to the following steps: - Define the purpose of the forecast o Establish a time horizon - Select a forecasting technique o Gather ...

The relationship between language and thinking please

"The Relationship Between Language and Thinking" Please respond to the following: Consider the following quote by the philosopher Ludwig Wittgenstein, who believed that thought without language was impossible: "The limit ...

For 100 consecutive days a company making nutritional

For 100 consecutive days, a company making nutritional supplements has measured the amount of a protein the company puts into its protein bars. Each day, the company takes a sample of 6 protein bars. The average across a ...

Questionusing minitab andor a cause-and-effect diagram

Question: Using Minitab and/or a cause-and-effect diagram, identify the root cause of the problem you are trying to solve for the process you chose in 1-3. Also, construct a main effects plot, if applicable.

In this discussion forum you will discuss the implications

In this discussion forum, you will discuss the implications of not having a clear and precise scope of the project, and why it needs to be approved by higher management. Also discuss the importance of listing, sequencing ...

Short essays no required length1 discuss how occupational

Short essays (no required length) 1. Discuss how occupational safety and health laws and regulations are established, implemented and possibly altered. 2. Compare and contrast this with the establishment of environmental ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen