Recall that the expected value of a random variable is the average result in the long run of many trials. We've seen howthe expected value can be useful in analyzing benefits or making decisions in topics such as gambling and insurance. Tryto think of another application where knowing the expected value of a quantitative result can help you to make a moreinformed decision.2.In our response, be sure to include the following:(i) Describe the quantitative variable in context. For example, when playing the lottery, one may state that the quantitativevariable is the amount of money won, after the cost of the ticket is subtracted.(ii) Explain how knowing the expected value of this variable can help someone make a more informed decision.(iii) How can knowing the standard deviation of the variable also be useful?

There are a wide range of applications of expected value. Manufacturing companies produce large…

Answered: Recall that the expected value of a…

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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One personality test available on the World Wide Web has a subsection designed to assess the "honesty" of the test-taker. You are interested in the mean score, μ, among the general population on this subsection. The website reports that μ is 140, but you have good reason to believe that μ differs from 140. You decide to do a statistical test. You choose a random sample of people and have them take the personality test. You find that their mean score on the subsection is 146 and that the standard deviation of their scores is 22. Based on this information, complete the parts below. A. What are the null hypothesis H0 and the alternative hypothesis H1 that should be used for the test? H0: H1: B. Suppose you decide to reject the null hypothesis. Would you be making a type I or type II error?

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