1. This Week 3 Project has 100 points.
2. Solutions should consist of an Excel workbook and a Word document. Please attach both files
when submitting the project.
3. Perform. all calculations and analysis In the Excel workbook.
4. In the Word document, write a report summarizing the results obtained in your Excel
workbook.
5. The project will be graded according to the following rubric:
The submission of each weekly project will consist of an Excel workbook and a Word document (an R
script. file is optional)– a minimum of two submissions that have been submitted as attachments. For
each weekly project, students should complete their analytic work in an Excel workbook, and write a
minimum of 800 words in a Word document describing their findings. The Word document should
consist of a title page (including student’s name, assignment title, course number and title, the current
academic term, instructor’s name, and the assignment completion date), and a reference page. The
Word submission of each project will consist of three sections:
(i) Introduction
(ii) Analysis
(iii) Conclusion
The weekly projects will be graded by using the following criteria:
(a) Excel Workbook (50 points)
(i) Problem set-up and modeling (50%)
(ii) Problem solution and accuracy (50%)
(b) Word Document (50 points)
(i) Description of the problem introduction (20%)
(ii) Description of the problem analysis (30%)
(iii) Description of conclusion (30%)
(iv) Writing Mechanics, Title page, and References (20%)
Caveman Keno
https://wizardofodds.com/games/keno/appendix/2/
Keno is a popular electronic game that is being played in casinos and Online by a large number
of players every day. In a typical Keno game, a player may choose between 2 to 10 numbers,
ranging from 1 to 80. The computer will then draw 20 numbers, ranging from 1 to 80, and the
player wins according to a pay table and according to how many of his/her chosen numbers are
matched by the 20 numbers drawn by computer. In the majority of cases, game designers add
more features such as additional bonuses to the base keno game described above, so that the
game becomes more attractive. In a particular version of such keno games offered by the Online
keno vender “wizzardofodds.com”, called the Caveman Keno, the game has the following
characteristics:
1. The player chooses from two to ten numbers, ranging from 1 to 80, as in regular keno.
2. The computer will draw three numbers at random among the numbers the
player did not pick. These three numbers will be marked with dinosaur eggs.
3. The computer will then draw 20 numbers, ranging from 1 to 80, as in regular keno.
4. The player will win depending in part on the number of the player's picks that
match the 20 numbers chosen by the computer, as in regular keno.
5. The player will get a multiplier according to the number of eggs that match the
20-ball draw. The usual multipliers are 1x for 0 or 1 match, 3x (3 times the player’s win) for two matches,
and 6x for three matches.
6. The player's win will be the sum of the wins of the regular keno pay table and the multiplier wins.
In this game, suppose that each game costs the player $1 to play.
The pay table of this game is shown below:
Pay Table
Catch
Pick
2
Pick
3
Pick
4
Pick
5
Pick
6
Pick
7
Pick
8
Pick
9
Pick
10
0 - - - - - - - - -
1 - - - - - - - - -
2 10 3 1 1 - - - - -
3 16 5 2 2 1 1 - -
4 74 13 6 3 2 1 1
5 80 70 14 5 6 5
6 150 270 68 50 10
7 1000 200 125 77
8 1000 500 250
9 1000 500
10 1,000
For each pick and separately, calculate the following in Excel
1. Average RTP% (percentage Return to player) of Keno. Note that this is the expected win per game and per
dollar spent, excluding the bonus wins.
2. Hit Frequency of Keno. This is the percentage of time that players win a hand.
3. Pulls per Hit of Keno. This is the average number of times a player has to play before he/she wins something.
4. Bonus Hit Frequency. This is the percentage of time that players win a bonus.
5. Bonus Pulls per Hit. This is the average number of times a player has to play before he/she wins a bonus.
6. Average RTP% (percentage return to player) from Bonus. This is the expected bonus win per game.
7. Total RTP% (percentage return to player) of Game. This is the sum of the RTP% from the base game and the
RTP% from the bonus
8. The volatility index of the game (i.e., the standard deviation of the pays probability distribution)
9. A Summary table, located below the pay table and including each of the 8 metrics above,
so that any change in the pay table will automatically change the values of the 8 metrics.
Pick 2 Pick 3 Pick 4 Pick 5 Pick 6 Pick 7 Pick 8 Pick 9 Pick 10
Keno RTP%
Keno Hit Freq.
Keno Pulls / Hit
Bonus RTP%
Bonus Hit Freq.
Bonus Pulls /
Hit
Game Total
RTP%
Volatility Index