Casino gambling. Recently, the International Gaming Technology company issued the following press release:
(LAS VEGAS, Nev.)-Cynthia Jay was smiling ear to ear as she walked into the news conference at the Desert Inn Resort in Las Vegas today, and well she should. Last night, the 37-year-old cocktail waitress won the world's largest slot jackpot- $34,959,458-on a Megabucks machine. She said she had played $27 in the machine when the jackpot hit. Nevada Megabucks has produced 49 major winners in its 14-year his- tory. The top jackpot builds from a base amount of $7 million and can be won with a 3-coin ($3) bet.
a) How can the Desert Inn afford to give away millions of dollars on a $3 bet?
b) Why did the company issue a press release? Wouldn't most businesses want to keep such a huge loss quiet?