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
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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 (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? 

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