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I don't understand how the formula for the law of large numbers will look in this question. So far I have done this:
I don't understand how the formula for the law of large numbers will look in this question. So far I have done this:
We can say that the probability of earning 1 euro is
P(X = 1);
and the probability of losing 1 euro is equal to
P(X = -1);
We have probabilities for these two;
P(X = 1) = 19/37;
P(X = -1) = 18/37;
We can now compute the expected value of X, and since it's a discrete variable we use the formula;
(1)*19/37+(-1)*(18/37); = 1/37
We also know that the game is played 1000 times, 365 days a year, so
1000*365; = 365000 times.
We then use the law of large numbers, which has the formula;