Consider a game in which you toss a coin 4 times. You have to pay $5 to play the game. You win $50 if you toss four heads, $30 if you toss three heads, and nothing otherwise. (a) On average, what is your profit (wins minus losses) from playing this game? (b) What is the standard deviation of the profit?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Consider a game in which you toss a coin 4 times. You have to pay $5 to play the game. You win $50 if you toss four heads, $30 if you toss three heads, and nothing otherwise.
(a) On average, what is your profit (wins minus losses) from playing this game?
(b) What is the standard deviation of the profit?
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