Determine whether the following statement makes sense or does not make sense, and explain your reasoning. Here's my dilemma, I can accept a $1500 bill or play a game ten times. For each roll of the single die, I win $600 for rolling 1 or 2; I win $100 for rolling 3; and I lose $500 for rolling 4, 5, or 6. Based on the expected value, I should accept the $1500 bill. Choose the correct answer below, and fill in the answer box to complete your choice. (Round to the nearest cent as needed. Do not include the $ symbol in your answer.) O A. The statement does not make sense because the expected value after ten rolls is dollars, which is greater than the value of the current bill. B. The statement makes sense because the expected value after ten rolls is dollars, which is less than the value of the current bill.
Determine whether the following statement makes sense or does not make sense, and explain your reasoning. Here's my dilemma, I can accept a $1500 bill or play a game ten times. For each roll of the single die, I win $600 for rolling 1 or 2; I win $100 for rolling 3; and I lose $500 for rolling 4, 5, or 6. Based on the expected value, I should accept the $1500 bill. Choose the correct answer below, and fill in the answer box to complete your choice. (Round to the nearest cent as needed. Do not include the $ symbol in your answer.) O A. The statement does not make sense because the expected value after ten rolls is dollars, which is greater than the value of the current bill. B. The statement makes sense because the expected value after ten rolls is dollars, which is less than the value of the current bill.
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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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.
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Transcribed Image Text:Determine whether the following statement makes sense or does not make sense, and explain your reasoning.
Here's my dilemma, I can accept a $1500 bill or play a game ten times. For each roll of the single die, I win $600 for rolling 1 or 2; I win $100 for rolling 3; and I lose
$500 for rolling 4, 5, or 6. Based on the expected value, should accept the $1500 bill.
Choose the correct answer below, and fill in the answer box to complete your choice.
(Round to the nearest cent as needed. Do not include the $ symbol in your answer.)
O A. The statement does not make sense because the expected value after ten rolls is
dollars, which is greater than the value of the current bill.
O B. The statement makes sense because the expected value after ten rolls is
dollars, which is less than the value of the current bill.
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