SOLUTION: If casino Keno were fair, how much should it pay to a player who bets $2 to bet 6 numbers and matches 4 numbers? The odds against matching 4 numbers in casino Keno when you bet 6 n

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Question 326839: If casino Keno were fair, how much should it pay to a player who bets $2 to bet 6 numbers and matches 4 numbers? The odds against matching 4 numbers in casino Keno when you bet 6 numbers are about 34 to 1.

Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website!
If casino Keno were fair, how much should it pay to a player who bets $2 to bet 6 numbers and matches 4 numbers? The odds against matching 4 numbers in casino Keno when you bet 6 numbers are about 34 to 1.
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P(lose) = 34/35
P(win) = 1/35
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Find expected winning or losing amount:
Random winnings: x-2 or -2
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Expected value: (34/35)(-2) + (1/35)(x-2)
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If the game is fair E(x) = 0
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Solve (34/35)(-2) + (1/35)(x-2) = 0
Multiply thru by 35 to get:
-68 + x-2 = 0
x = 70
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The casino should pay $70 to a winner.
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Cheers,
Stan H.