Probability

Project3_coverletter.pdf

Phone: 702-555-0010

Fax: 702-555-1010

210 Fremont St

Suite 10

Las Vegas, NV 89101

Perfect 10 Casino and Resort

Dear Gaming Analyst,

The Perfect 10 Casino and Resort is developing a new game unique for our casino. We would like this

game to use the traditional gaming devices of craps (two dice), roulette (ball and wheel), and cards

(standard deck). In order to promote the casino as much as possible, we have the winning combination

to use the number ten as much as possible. Also, our marketing strategy for the grand opening of the

casino will include a strong connection to this newest, wildest game downtown. We have developed

two options that we would like you to examine for us.

For the game, we would like to have four outcomes: player (1) lost initial bet, (2) paid grand prize, (3)

paid $1,000, and (4) paid $100. For our opening day, we would like to have the game consist of a

grand prize of $1,000,000 with a house edge within the $5—$10 range and the initial bet to be between

$10 and $50. For our regular operations, we would like to have a grand prize of $10,000 and payouts

of $1,000 and $100 with a house edge within the $1.50—$3.50 range and the initial bet to be between

$5 and $10.

Option 1:

Player wins:

 Grand prize if sum of two dice is 10, spin a 10 on the roulette wheel, and draw two 10s.

 $1000 if sum of two dice is greater than 10, spin is less than 10, and draw two 10s.

 $100 if sum of two dice is less than 10, spin is greater than 10, and draw two face cards.

Option 2:

Player wins:

 Grand prize if sum of two dice is 10, spin a 10 on the roulette wheel, and draw two 10s.

 $1000 if the player gets two out of three of the Grand prize outcomes.

 $100 if the player gets one out of the three of the Grand prize outcomes.

The deadline for your analysis of the betting size for our games is November 19, 2011. With your re-

port, please include the Game Information Sheet. If you have any questions, please contact the VP of

Gaming Operations, Pat Averbeck, at [email protected], or 425.640.1093. We look forward

to examining your analysis of our games.

Sincerely,

Reuben Tishkoff

CEO