person must pay $$5 to play a certain game at the casino. Each player has a probability of 0.14 of winning $$14, for a net gain of $$9 (the net gain is the amount won 14 minus the cost of playing 5). Each player has a probability of 0.86 of losing the game, for a net loss of $$5 (the net loss is simply the cost of playing since nothing else is lost). What is the Expected Value for the player (that is, the mean of the probabiltiy distribution)? If the Expected Value is negative, be sure to include the "-" sign with the answer. Express the answer with two decimal places. Expected Value = $ If a person plays this game a very large number of times over the years, do we expect him/her to come out financially ahead or behind? behind ahead
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.
A person must pay $$5 to play a certain game at the casino. Each player has a
Each player has a probability of 0.86 of losing the game, for a net loss of $$5 (the net loss is simply the cost of playing since nothing else is lost).
What is the
Expected Value = $
If a person plays this game a very large number of times over the years, do we expect him/her to come out financially ahead or behind?
- behind
- ahead
Given Information:
The probability distribution of X where X is the net gain or loss.
|
Profit (X) |
$9 |
-$5 |
|
P(X) |
0.14 |
0.86 |
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