2. If a gambler makes repeated wagers, each with a probability of winning equal to 0.40, what is
the formula for the probability that they lose their first 5 wagers?
(a) 5 x 0.60
(b) 5 x 0.40
(c) 0.60 raised to the 5th power
(d) 0.40 raised to the 5th power

(c) 0.60 raised to the 5th power

Explanation:

The probability of winning = 0.4

The probability of losing = 1 - 0.4

                                      = 0.6

Probability of losing their first 5 wagers = ?

Probability of losing first 5 wagers = (0.6)⁵

Therefore, the probability of losing first 5 wagers is (0.6)⁵

In loss case

CP =SP +loss amount