a) What is the expected value of a puzer b) One customer has two chances to receive a prize. If the customer keeps the higher of the two prizes awarded, what is the probability the customer will receive at least $100?

A First Course in Probability (10th Edition)
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ISBN:9780134753119
Author:Sheldon Ross
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Chapter1: Combinatorial Analysis
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4) A real estate developer is awarding one of four prizes to customers who view new
properties. The prizes are awarded randomly through drawings. Prize values and their
associated probabilities follow:
QMETH 201, Homework 3
Prize value
$
SASA LA SA
10
$ 50
100
1,000
$
$
Probability
0.70
0.20
0.08
0.02
a) What is the expected value of a prize?
b) One customer has two chances to receive a prize. If the customer keeps the higher of
the two prizes awarded, what is the probability the customer will receive at least
$100? 1
Transcribed Image Text:4) A real estate developer is awarding one of four prizes to customers who view new properties. The prizes are awarded randomly through drawings. Prize values and their associated probabilities follow: QMETH 201, Homework 3 Prize value $ SASA LA SA 10 $ 50 100 1,000 $ $ Probability 0.70 0.20 0.08 0.02 a) What is the expected value of a prize? b) One customer has two chances to receive a prize. If the customer keeps the higher of the two prizes awarded, what is the probability the customer will receive at least $100? 1
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