Basic Computation: Expected Value For a fundraiser, 1000 raffle tickets ar 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? I Cuiti

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
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pro
obal
bility distribution of a random varia
x. Is the expected value of the distribution necessarily one of the possible
values of x? Explain or give an example.
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.
8.1 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?
9. Critical Thinking: Simulation We can use the random-number table to
simulate outcomes from a given discrete probability distribution. Jose
plays basketball and has probability 0.7 of making a free-throw shot Lot
Transcribed Image Text:pro obal bility distribution of a random varia x. Is the expected value of the distribution necessarily one of the possible values of x? Explain or give an example. 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. 8.1 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? 9. Critical Thinking: Simulation We can use the random-number table to simulate outcomes from a given discrete probability distribution. Jose plays basketball and has probability 0.7 of making a free-throw shot Lot
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