1. Juan is playing a game in which he can win $100 with probability 0.1, $200 with probability 0.2, or $300 with probability 0.7. What is the expected value of Juan's winnings?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
1. Juan is playing a game in which he can win $100 with
2. The first prize for a raffle is 5,000 dollars (with a probability of 0.001) and the second prize is 2,000 dollars (with a probability of 0.003). What is a fair price to pay for a single ticket in this raffle? Also find the standard deviation
3. You have 100 dollars and can invest into a stock. The returns are volatile and you may get either $120 with probability of 0.4, or $90 with probability 0.6. What is the expected gain/loss of your investment? Find the standard deviation
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