Answered: a. Complete the PDF Table. List the X…

Name: Suppose that you are offered the following "deal." You roll a six side
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Description: Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $18. If you roll a 3, 4 or 5, you win $3. Otherwise, you pay $2. a. Complete the PDF Table. List the X values, where X is the profit, from smallest

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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Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $18. If you roll a 3, 4 or 5, you win $3. Otherwise, you pay $2.

a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round to 4 decimal places where appropriate.

b. Find the expected profit. $ (Round to the nearest cent)

c. Interpret the expected value.

If you play many games you will likely win on average very close to $3.83 per game.
This is the most likely amount of money you will win.
You will win this much if you play a game.

d. Based on the expected value, should you play this game?

No, this is a gambling game and it is always a bad idea to gamble.
No, since the expected value is negative, you would be very likely to come home with less money if you played many games.
Yes, since the expected value is positive, you would be very likely to come home with more money if you played many games.
Yes, because you can win $18.00 which is greater than the $2.00 that you can lose.
Yes, since the expected value is 0, you would be very likely to come very close to breaking even if you played many games, so you might as well have fun at no cost.

Definition Definition Probability of occurrence of a continuous random variable within a specified range. When the value of a random variable, Y, is evaluated at a point Y=y, then the probability distribution function gives the probability that Y will take a value less than or equal to y. The probability distribution function formula for random Variable Y following the normal distribution is: F(y) = P (Y ≤ y) The value of probability distribution function for random variable lies between 0 and 1.

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