Question 6: I am teaching my ten year old daughter about the stock market. She “invests” $10 with me. I toss 2 coins. If both are tails, I pay her back $20. If one is heads and one is tails, I pay her back $5. If both are heads, I pay her nothing. What is her expected payoff? What is the variance of her payoff?
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.
Question 6:
I am teaching my ten year old daughter about the stock market. She “invests” $10 with me. I toss 2 coins. If both are tails, I pay her back $20. If one is heads and one is tails, I pay her back $5. If both are heads, I pay her nothing. What is her expected payoff? What is the variance of her payoff?
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