does bounce rate effect google serps?

It definitely does for AdWords, but for organic listings that is tough to tell

Alot of guessing going on.... if i put my guess in, i would say of course it does.. a person might be informed with "how to make crayons" on the first page, but that is really not the point.

Websites that have 1000000+ pages are usually placed high when SEO and bank-linked correctly because they contain ALOT of useful info. That is what Google is looking for. Hence the reason MFA sites got the boot with the panda update. 4 page sites that just didn't do it for Adsense. Everyone should know by now that Google wants you to mix it up with Videos, Articles, Comment boxes, Unique templates/designs, fast loading pages, Hidden Inner pages(links), Images, Etc. This brings value and a lengthy popular website that visitors enjoy and participate with. That is why the "Crayon" argument can't stand up to the website that has the "crayon" PLUS a bunch of other articles that are linked in the paragraph of the crayon article.

How can Google easily determine if that website is worthy of the #1 spot? Bounce rate surly would come in to play.

Remember the "fundamentals" of SEO is to create unique pages and website that bring value to the customer/vistor. That is SEO 101 and that is a low bounce rate time. I was taught this as well as many other parts of SEO, and bounce rate is defiantly a contributing factor to how Google ranks in the SERPs, always has been, and most likely always will be.

But i am just guessing? http://tinypic.com/r/30neo1t/7
This particular site has #2 nintendo - looking up at us #1