Answer:
-$0.26 ; $5
Step-by-step explanation:
Given that :
____________ Lose ______ Win
X =$1 _______ - $1 ________ $1
P(X) _______20/ 38 _____ 18/38
Mean, Ux = - $0.05
Standard deviation, σx = $1.00
If the wager is $5 instead of $1
Mean = Σx*p(x)
Mean = (-5 * 20/38) + (5 * 18/38)
Mean = - 2.6315789 + 2.3684210
Mean (μ) = −0.26
Standard deviation :
Sqrt(Σx²p(x) - μ²)
[(-5^2)*(20/38) + (5^2)*(18/38)] - (-0.26^2)
(13.157894 + 11.842105) - 0.0676
= 24.999999 - 0.0676
= sqrt(24.932399)
= 4.9932353
= 5