48. Suppose you simulate a gambling situation where youplace many bets. On each bet, the distribution of yournet winnings (loss if negative) is highly skewed tothe left because there are some possibilities of reallylarge losses but not much upside potential. Your onlysimulation output is the average of the results of allthe bets. If you run @RISK with many iterations andlook at the resulting histogram of this output, whatwill it look like? Why?
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.
48. Suppose you simulate a gambling situation where you
place many bets. On each bet, the distribution of your
net winnings (loss if negative) is highly skewed to
the left because there are some possibilities of really
large losses but not much upside potential. Your only
simulation output is the average of the results of all
the bets. If you run @RISK with many iterations and
look at the resulting histogram of this output, what
will it look like? Why?
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