8. Basic Computation: Expected Value For a fundraiser, 1000 raffle tickets are sold and the winner is chosen at random. There is only one prize, $500 in cash. You buy one ticket. (a) What is the probability you will win the prize of $500? (b) Your expected earnings can be found by multiplying the value of the prize by the probability you will win the prize. What are your expected earnings? (c) Interpretation If a ticket costs $2, what is the difference between your "costs" and "expected earnings"? How much are you effectively contrib- uting to the fundraiser?
8. Basic Computation: Expected Value For a fundraiser, 1000 raffle tickets are sold and the winner is chosen at random. There is only one prize, $500 in cash. You buy one ticket. (a) What is the probability you will win the prize of $500? (b) Your expected earnings can be found by multiplying the value of the prize by the probability you will win the prize. What are your expected earnings? (c) Interpretation If a ticket costs $2, what is the difference between your "costs" and "expected earnings"? How much are you effectively contrib- uting to the fundraiser?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Please answer number 8. Answer all parts!! Make sure to show work! Thanks!
Transcribed Image Text:7. Basic Computation: Expected Value and Standard Deviation Consider
the probability distribution shown in Problem 3(a). Compute the expected
value and the standard deviation of the distribution.
8. Basic Computation: Expected Value For a fundraiser, 1000 raffle tickets
are sold and the winner is chosen at random. There is only one prize, $500 in
cash. You buy one ticket.
(a) What is the probability you will win the prize of $500?
(b) Your expected earnings can be found by multiplying the value of the
prize by the probability you will win the prize. What are your expected
earnings?
(c) Interpretation If a ticket costs $2, what is the difference between your
"costs" and "expected earnings"? How much are you effectively contrib-
uting to the fundraiser?
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