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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The following table shows the hypothetical results of your study. This table displays the observed frequencies with the expected frequencies shown in parentheses to allow you to compare these values. Frequencies: Observed (Expected) Like Spicy Food? Men Women Yes 62 (71.7) 106 (96.3) No 66 (56.3) 66 (75.7) To describe the details of the significant result, compare the provided observed and expected frequencies. Which of the following statements best describes the results? Women prefer spicy food more than men. Men prefer spicy food more than women.
What is the role and importance of statistical thinking?
The boxplot below shows salaries for CPAS and Actuaries in a town. СРА Actuary 20 30 40 50 60 70 80 90 100 110 Salary (thousands of $) If a person is making the third quartile salary for a CPA, they are making less than % of Actuaries.
You are testing the claim that the proportion of men who own cats is smaller than the proportion of women who own cats.You sample 190 men, and 71 own cats.You sample 130 women, and 114 own cats.Find the test statistic, rounded to two decimal places
Based on predictive modeling, this upcoming Winter is going to have very unpredictable weather. The National Weather service is considering abolishing specific long-term forecasts, and instead will utilize a statistical model that predicts a mean of six significant snowfalls per month. Use this information to answer the following question correctly: Trying to be forward-thinking, I'm going to try planning my one month long Winter Break based around this model's predictions. I will only travel for the holidays if there is at most one significant snowfall over winter break. What is the probability of this happening? O 0.0174 O 0.0149 O 0.0025 O 0.0542
Sarah thinks that she has lost interest in online shopping. Based on her shopping history, she can see that her average purchases in the past were about 4 items on average each week. Since this last month, she can now see that she has only purchased 2 items on average each week, (with a SD of 1). To determine whether her shopping habits have changed, what statistical test should be used here?
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 145, but you have good reason to believe that μ is less than 145. 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 139 and that the standard deviation of their scores is 28. Based on this information, complete the parts below. (a) What are the null hypothesis H0 and the alternative hypothesis H1that should be used for the test? H0: H1: (b) Suppose that you decide to reject the null hypothesis. What sort of error might you be making? ▼(Choose one) (c) Suppose the true mean score among the general population on the subsection is 136. Fill in the blanks to describe a Type II error. A Type II error…
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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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