Find the Expected value or Mean of the following. Show your complete solution. Rafael plays a gambling game where it is possible to lose $2.00, break-even, win $4.00, or win $15.00 each time he plays. The probability distribution for each outcome is provided by the following table: Outcome -$2.00 $0.00 $4.00 $15.00 Probability 0.30 0.40 0.20 0.10 Suppose that the casino decides that the game does not have an impressive enough top prize with the lower payouts, and decides to double all of the prizes, as follows: Outcome -$5.00 -$1.00 $6.00 $10.00 Probability 0.25 0.35 0.25 0.15 As in the case of the mean, consider the gambling game in which the casino chooses to lower each payout by $1.00, then double each prize. The resulting distribution is the following: Outcome -$6.00 -$3.00 $6.00 $12.00 Probability 0.30 0.40 0.20 0.10
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.
Find the
- Rafael plays a gambling game where it is possible to lose $2.00, break-even, win $4.00, or win $15.00 each time he plays. The
probability distribution for each outcome is provided by the following table:
Outcome -$2.00 $0.00 $4.00 $15.00
Probability 0.30 0.40 0.20 0.10
- Suppose that the casino decides that the game does not have an impressive enough top prize with the lower payouts, and decides to double all of the prizes, as follows:
Outcome -$5.00 -$1.00 $6.00 $10.00
Probability 0.25 0.35 0.25 0.15
- As in the case of the mean, consider the gambling game in which the casino chooses to lower each payout by $1.00, then double each prize. The resulting distribution is the following:
Outcome -$6.00 -$3.00 $6.00 $12.00
Probability 0.30 0.40 0.20 0.10
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