At a casino, people play the slot machines in hopes of hitting the jackpot, but most of the time, they lose their money. A certain machine pays out an average of $0.92 (for every dollar played), with a standard deviation of $120.
a) Why is the standard deviation so large?
b) If a gambler plays 5 times, what are the mean and standard deviation of the casino’s profit?
c) If gamblers play this machine 1000 times in a day, what are the mean and standard deviation of the casino’s profit?