solve the following Coach Lasso was meeting with Rebecca, going over plans for winning the Premiere League

solve the following

 

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Coach Lasso was meeting with Rebecca, going over plans for winning the Premiere League Cup. "Rebecca, we need more Jamie Tarts. Wouldn't that be sweet? Like our own See's Candies factory right here in Richmond, making sweet-n-tart players." "I agree coach, but for that we need money. A lot more money. Any thoughts?" "I think so. Hear me out. You know that game where we bet on the sum of two dice? The one we play with Rupert and his child-wife. As you recall, in a fair game, here's the price to play, probabilities, and payoffs in American dollars:" 2 3 4 Sum to Two 6-sided Dice 5 6 7 8 9 $1.00 $1.00 $1.00 $1.00 $1.00 4/36 5/36 6/36 5/36 4/36 Winning Payoff $36.00 $18.00 $12.00 $9.00 $7.20 Price to Play $1.00 $1.00 $1.00 Probability 1/36 2/36 3/36 10 $1.00 3/36 $6.00 $7.20 $9.00 $12.00 11 12 $1.00 $1.00 1/36 2/36 $18.00 $36.00 "Well, as it turns out, I have a special power over the outcome of one of the dice. For example, if I believe that one of the dice will be a 6, it will be a 6 80% of the time. I call it the Lasso lariat - I'm wrangling one of the dice, just like a small steer back in Oklahoma." "So, if you 'believe' the outcome will be 6, 6 comes up 80% of the time? And what about the other 20% of the time?" "Each of the other sides come up 4% of the time. The gambling gods do need to keep me humble. And I can only focus on one of the dice. The other die is completely fair." "And exactly how did you figure this out?" "Oh, I took Dr. Banko for a finance class. He made me learn this. As he always says, 'finance is life!" "Capitalist..." Rebecca and Coach Lasso head over to Rupert's house to play. For the first roll, Coach Lasso believes (with all his heart) that the outcome of one of the dice will be 5. He bets long on 10 and short on 4. What is the expected payoff to the strategy? Enter your answer in dollars and cents, rounded to the nearest cent, with no punctuation. For example, if your answer is $5.286, enter "5.29". Coach Lasso was meeting with Rebecca, going over plans for winning the Premiere League Cup. "Rebecca, we need more Jamie Tarts. Wouldn't that be sweet? Like our own See's Candies factory right here in Richmond, making sweet-n-tart players." "I agree coach, but for that we need money. A lot more money. Any thoughts?" "I think so. Hear me out. You know that game where we bet on the sum of two dice? The one we play with Rupert and his child-wife. As you recall, in a fair game, here's the price to play, probabilities, and payoffs in American dollars:" 2 3 4 Sum to Two 6-sided Dice 5 6 7 8 9 $1.00 $1.00 $1.00 $1.00 $1.00 4/36 5/36 6/36 5/36 4/36 Winning Payoff $36.00 $18.00 $12.00 $9.00 $7.20 Price to Play $1.00 $1.00 $1.00 Probability 1/36 2/36 3/36 10 $1.00 3/36 $6.00 $7.20 $9.00 $12.00 11 12 $1.00 $1.00 1/36 2/36 $18.00 $36.00 "Well, as it turns out, I have a special power over the outcome of one of the dice. For example, if I believe that one of the dice will be a 6, it will be a 6 80% of the time. I call it the Lasso lariat - I'm wrangling one of the dice, just like a small steer back in Oklahoma." "So, if you 'believe' the outcome will be 6, 6 comes up 80% of the time? And what about the other 20% of the time?" "Each of the other sides come up 4% of the time. The gambling gods do need to keep me humble. And I can only focus on one of the dice. The other die is completely fair." "And exactly how did you figure this out?" "Oh, I took Dr. Banko for a finance class. He made me learn this. As he always says, 'finance is life!" "Capitalist..." Rebecca and Coach Lasso head over to Rupert's house to play. For the first roll, Coach Lasso believes (with all his heart) that the outcome of one of the dice will be 5. He bets long on 10 and short on 4. What is the expected payoff to the strategy? Enter your answer in dollars and cents, rounded to the nearest cent, with no punctuation. For example, if your answer is $5.286, enter "5.29".

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To calculate the expected payoff of the strategy where Coach Lasso can influence one die to roll a 6 with 80 probability and the other die is fair we ... View the full answer