Question

Roger had a litre of Pepsi. His measured glucose level one hour after having the Pepsi was found to vary according to a Normal distribution with ? = 122 mg/dL and ? = 12 mg/dL. What is the level L such that there is a probability only 0.1 that the mean glucose level of four test results falls below L?

(4 marks)

4. Explain in your own words how Law of large numbers can be used to make money in

Casinos? Give proper reasonings

Answer 1

Mean = 122, SD = 12

Let X be the glucose level following the normal distribution

We need to find L such that P(X<L) = 0.1

Using the Excel function NORM.INV(0.1,122,12), we find L = 106.6

So, the answer is 106.6

4)

The Law of the large number tells us that as we increase the number of cases, the results of the events will follow the theoretical probability. So in a casino, there is a guaranteed and steady result comes in the long term. So, even if any particular day, the casio seems to lose, in long term as the event's outcome will follow the theoretical probability, the casio is set to make money as they have set the gambles accodingly