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Casino. A casino knows that people play the slot machines in hopes of hitting the jackpot but that most of them lose their dollar. Suppose a certain machine pays out an average of $0.92, with a standard deviation of $120.
a) Why is the standard deviation so large?
b) If you play 5 times, what are the mean and standard deviation of the casino's profit?
c) If gamblers play this machine 1000 times in a day, what are the mean and standard deviation of the casino's profit?
d) Is the casino likely to be profitable? Explain.
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