1. Calculate the expected value of each of the following gambles.a. win $500 with probability 0.25; win $100 with probability 0.45; lose $200 with probability0.3.b. win $1,000,000 with probability .0001; lose $20 with probability 9999 (a lottery ticket!).c. win $6,000 with probability .5; lose $2,000 with probability 5d. win $3,000 with probability 2/3; lose $6,000 with probability 1/3.

To calculate the expected value of a gamble, you multiply each possible outcome by its probability…

Answered: 1. Calculate the expected value of each…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Whenever Suzan sees a bag of marbles, she grabs a handful at random. She has seen a bag containing three red marbles, four green ones, fivewhite ones, and three purple ones. She grabs eight of them. Find the probability of the following event, expressing it as a fraction in lowest terms. She has all the red ones.
You hold an oral, or English, auction among three bidders. You estimate that each bidder has a value of either $48 or $60 for the item, and you attach probabilities to each value of 50%. The winning bidder must pay a price equal to the second highest bid. The following table lists the eight possible combinations for bidder values. Each combination is equally likely to occur. On the following table, indicate the price paid by the winning bidder. Bidder 1 Value Bidder 2 Value Bidder 3 Value Probability Price ($) ($) ($) $48 $48 $48 0.125 $48 $48 $60 0.125 $48 $60 $48 0.125 $48 $60 $60 0.125 $60 $48 $48 0.125 $60 $48 $60 0.125 $60 $60 $48 0.125 $60 $60 $60 0.125 The expected price paid is ______ . Suppose that bidders 1 and 2 collude and would be willing to bid up to a maximum of their values, but the two bidders would not be willing to bid against each other. The probabilities of the…
Among the first 50 stocks listed in the New York Stock Exchange transactions on a certain day (as reported in the Wall Street Journal), there were 22 stocks that went down, 19 that went up, and 9 that remained unchanged. On the basis of this information, find the probability that a stock selected at random from this list would not have remained unchanged. (Enter your probability as a fraction.)
A person must pay $$6 to play a certain game at the casino. Each player has a probability of 0.1 of winning $$11, for a net gain of $$5 (the net gain is the amount won 11 minus the cost of playing 6).Each player has a probability of 0.9 of losing the game, for a net loss of $$6 (the net loss is simply the cost of playing since nothing else is lost).What is the Expected Value for the player (that is, the mean of the probabiltiy distribution)? If the Expected Value is negative, be sure to include the "-" sign with the answer. Express the answer with two decimal places.Expected Value = $
Solve the following problems.A card is drawm from a deck of 52 cards. What is the probability that the card drawn isA. A face card or a spade?B. A red card or a face card?C. A black card or a diamond?D. an even number or a diamond?E. an odd number or a black card?
Whenever Suzan sees a bag of marbles, she grabs a handful at random. She has seen a bag containing three red marbles, four green ones, twowhite ones, and two purple ones. She grabs eight of them. Find the probability of the following event, expressing it as a fraction in lowest terms. She has all the red ones.
Suppose that the probability that a child living in an urban area in the United States is obese is 20%. If a social worker sees 15 children living in urban areas, what is the probability that 5 are obese? Enter response as .xxxx
You are waiting tables on the side, in order to make rent. You pick up one shift (one day, determined at random) per week. Business is very predictable - on Mondays, 10 tables are occupied with patrons, on Tuesdays, 20 tables, Wednesdays 30 tables, 40 tables on Thursdays and 50 on Fridays. You can assume that you make $10 in tips per table. Your annual rent is $14,400. What is the probability that you are able to make rent from this job, this year? (assuming you work all 52 weeks without a vacation or break)?
You purchase a brand new car for $15,000 and insure it. The policy pays 78% of the car's value if there is an issue with the engine or 30% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.009, and the probability there is an issue with the speaker system is 0.02. The premium for the policy is p. Let X be the insurance company's net gain from this policy. (a) Create a probability distribution for X, using p to represent the premium on the policy. Enter the possible values of X in ascending order from left to right. P(X) (b) Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent
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