Suppose the New York Yankees and Philadelphia Phillies are playing a best-of-three series. The first team to
Question:
a. Find the probability that the Yankees win the series.
b. Suppose you are a Yankees fan, so you place a bet on each game played where you win $100 if the Yankees win the game and you lose $105 if the Yankees lose the game. Find the distribution of your net winnings. Then find the mean and standard deviation of this distribution. Is this betting strategy favorable to you?
c. Repeat part a, but assume that the games are played in Philadelphia, then New York, then
Philadelphia. How much does this “home field advantage” help the Phillies?
d. Repeat part a, but now assume that the series is a best-of-five series, where the first team that wins three games wins the series. Assume that games alternate between New York and Philadelphia, with the first game in New York.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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