A gambler plays a game that requires dividing bet money among four choices. The game has...

 

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A gambler plays a game that requires dividing bet money among four choices. The game has three outcomes. The following table gives the corresponding gain or loss per dollar for the different options of the game. Outcome 1 2 3 Return per dollar deposited in choice 1 2 3 -3 5 3 4 -3 -9 -7 9 10 4 15 4 -8 The gambler has a total of $1500, which may be played only once. The exact outcome of the game is not known a priori. Because of this uncertainty, the gambler's strategy is to maximize the minimum return produced by the three outcomes. How should the gambler allocate the $1500 among the four choices? Solve the model using Solver or AMPL. (Hint: The gambler's net return may be positive, zero, or negative.) A gambler plays a game that requires dividing bet money among four choices. The game has three outcomes. The following table gives the corresponding gain or loss per dollar for the different options of the game. Outcome 1 2 3 Return per dollar deposited in choice 1 2 3 -3 5 3 4 -3 -9 -7 9 10 4 15 4 -8 The gambler has a total of $1500, which may be played only once. The exact outcome of the game is not known a priori. Because of this uncertainty, the gambler's strategy is to maximize the minimum return produced by the three outcomes. How should the gambler allocate the $1500 among the four choices? Solve the model using Solver or AMPL. (Hint: The gambler's net return may be positive, zero, or negative.)

Answer rating: 100% (QA)

Answer 6 Here the average return from all the 4 returns under Outcome 13471549445 Average ret... View the full answer