Question

Using Matlab. Suppose a casino invents a new game that you must pay $250 to play. The game works like this: The

casino draws

random numbers between 0 and 1

from a uniform distribution. It adds them to

gether until

their sum is greater than 1, at which time it stops drawing new numbers. You get a payout of $100 each

time a new number is drawn.

For example, suppose the casino draws 0.4 and then 0.7. Since the sum is greater than 1, it will stop

after the

se two draws, and you receive $200. If instead it draws 0.2, 0.3, 0.3, and then 0.6, it will stop

after the fourth draw and you will receive $40

0. Given the $250 entrance fee, should

you play the

game?

Answer 1

`Hey,

Note: Brother if you have any queries related the answer please do comment. I would be very happy to resolve all your queries.

clc%clears screen
clear all%clears history
close all%closes all files
p=250;
M=[];
for i=1:100000
re=0;
S=0;
while(S<=1)
S=S+rand;
re=re+100;
end
M(i)=re;
end
disp('Expected received money is');
mean(M)
disp('Since expcted is greater than what we pay. So, we will play')

Kindly revert for any queries

Thanks.