Find the house edge and standard deviation


Assume two (2) cards are dealt at random from k decks of cards (k is any positive integer, so total there are 52k cards). Assume you bet that two cards form a pair and the payoff is 11 to 1 for the bet.

(a) Determine your winning and losing probabilities.

(b) Determine the odds against your bet.

(c) Assume the bet is $1, find the house edge and standard deviation of the bet for k=4,6,8,?.

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Basic Statistics: Find the house edge and standard deviation
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