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Question
Suppose a casino is offering a game of chance where Teresa can bet $5 on the flip of a fair coin. If the casino employee flips tails, Teresa loses the $5 that she bet. If the casino employee flips heads, Teresa receives a payout of $11 (the $5 she originally bet plus another $6). If Teresa sits in the casino and plays this game 1,000 times consecutively over a period of 12 hours, she
a. will likely end up with less money than she started with.
b. will likely end up with more money than she started with.
c. will likely end up with the same amount of money that she started with.
d. is equally likely to end up with more money or less money than she started with.
e. will definitely end up with less money than she started with.
Answer
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Related questions
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Suppose Solomon lives in a community with no price controls. What do you expect will happen if his town borders a community where there is a binding price ceiling on most products?
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a. Demand for jelly will increase along with the price.
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