QUESTION 1:A GAME OF CHANCE INVOLVES A REGULAR DECK OF 52 CARDS. THE GAME COSTS $3 TO PLAY. IF YOU DRAW AN ACE, YOU WIN $20. IF YOU DRAW A FACE CARD, YOU WIN $5. IF YOU DRAW A 10, YOU WIN $3. IF YOU DRAW ANY OTHER CARD, YOU LOSE.

1. CALCULATE THE EXPECTED WINNINGS FOR THE PLAYER.
2. CALCULATE THE EXPECTED PROFITS FOR THE GAME OWNER.
3. IS THIS GAME A FAIR GAME? IF NOT, EXPLAIN WHY THE GAME OWNER WOULD WANT THE GAME SLIGHTLY IN HIS FAVOUR?

QUESTION 2:CONSIDER A GAME IN WHICH YOU ROLL A REGULAR EIGHT-SIDED DIE. WHEN YOU ROLL AN ODD NUMBER YOU WIN AN AMOUNT EQUAL TO DOUBLE THE ROLL. WHEN YOU ROLL AN EVEN NUMBER YOU WIN AN AMOUNT EQUAL TO HALF THE ROLL.

1. WHAT TYPE OF DISTRIBUTION BEST DESCRIBES THE SITUATION IN THIS GAME?
2. CALCULATE HOW MUCH YOU SHOULD CHARGE SOMEONE TO PLAY YOUR GAME IN ORDER FOR IT TO BE A FAIR GAME.