Betting on a football point spread works as follows. Suppose Michigan is favored by 17.5 points over Indiana. If you bet a “unit” on Indiana and Indiana loses by 17 or less, you win $10. If Indiana loses by 18 or more points, you lose $11. Find the mean and standard deviation of your winnings on a single bet. Assume that there is a 0.5 probability that you will win your bet and a 0.5 probability that you will lose your bet. Also simulate 1600 “bets” to estimate the average loss per bet.
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