Making decisions. The psychologist Amos Tversky did many studies of our perception of chance behavior. In its obituary of Tversky, the New York Times cited the following example. a. Tversky asked subjects to choose between two public health programs that affect 600 people. The first has probability 1/2 of saving all 600 and probability 1/2 that all 600 will die. The other is guaranteed to save exactly 400 of the 600 people. Find the expected number of people saved by the first program. b. Tversky then offered a different choice. One program has probability 1/2 of saving all 600 and probability 1/2 of losing all 600, while the other is guaranteed to lose exactly 200 of the 600 lives. What is the difference between this choice and that in part (a)? c. Given the options in part (a), most subjects choose the second program. Given the options in part (b), most subjects choose the first program. Do the subjects appear to use expected values in their choice? Why do you think the choices differ in parts (a) and (b)?
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.
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Making decisions. The psychologist Amos Tversky did many studies of our perception of chance behavior. In its obituary of Tversky, the New York Times cited the following example.
a. Tversky asked subjects to choose between two public health programs that affect 600 people. The first has probability 1/2 of saving all 600 and probability 1/2 that all 600 will die. The other is guaranteed to save exactly 400 of the 600 people. Find the expected number of people saved by the first program.
b. Tversky then offered a different choice. One program has probability 1/2 of saving all 600 and probability 1/2 of losing all 600, while the other is guaranteed to lose exactly 200 of the 600 lives. What is the difference between this choice and that in part (a)?
c. Given the options in part (a), most subjects choose the second program. Given the options in part (b), most subjects choose the first program. Do the subjects appear to use
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