Bethany is on a game show. She has chosen a single case which contains one of 4 possible amounts of money. The amounts her case might contain are $.01, $100, $200,000, or $500,000. Each amount is equally likely. Complete the table and use to answer the following questions. Case value = X .01 100 200,000 500,000 p(X) Xp(X) Find the expected amount of money in Bethany’s case (expected value). If Bethany were offered $180,000 for her case, would this be a good offer compared to the expected value? Suppose the $200,000 case has now been eliminated. Bethany’s case is now equally likely to contain either $.01, $100, or $500,000. What is the expected value of her case now?
Bethany is on a game show. She has chosen a single case which contains one of 4 possible amounts of money. The amounts her case might contain are $.01, $100, $200,000, or $500,000. Each amount is equally likely. Complete the table and use to answer the following questions. Case value = X .01 100 200,000 500,000 p(X) Xp(X) Find the expected amount of money in Bethany’s case (expected value). If Bethany were offered $180,000 for her case, would this be a good offer compared to the expected value? Suppose the $200,000 case has now been eliminated. Bethany’s case is now equally likely to contain either $.01, $100, or $500,000. What is the expected value of her case now?
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Bethany is on a game show. She has chosen a single case which contains one of 4 possible amounts of money. The amounts her case might contain are $.01, $100, $200,000, or $500,000. Each amount is equally likely. Complete the table and use to answer the following questions.
Case value = X | .01 | 100 | 200,000 | 500,000 |
p(X) | ||||
Xp(X) |
Find the expected amount of money in Bethany’s case (
If Bethany were offered $180,000 for her case, would this be a good offer compared to the expected value?
Suppose the $200,000 case has now been eliminated. Bethany’s case is now equally likely to contain either $.01, $100, or $500,000. What is the expected value of her case now?
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