Suppose that the weight of a particular hand weight is advertised to be 5 pounds, but it can actually be as little as 4.8 pounds or as much as 5.3 pounds. What is the expected value of the weight?
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- The starting quarterback for your high school team injured his shoulder at practice. The doctor says there is a 70% chance that he will play in the next game. If he plays in the game, the team will likely score 35 points. If the back up quarterback plays in the game, then the team will likely score 24 points. Find the expected value. Show your workA business proprietor sells on average $8000 worth of gasoline on rainy days and an average of $9500 on clear days. Statistics from the local meteorological station indicates that the probability is 0.76 for clear weather, and 0.24 for rainy weather on Sunday. Find the expected value of gasoline sales on Monday. Explain your calculations using one slide.Based on historical data, an insurance company estimates that a particular customer has a 1.4% likelihood of having an accident in the next year, with the average insurance payout being $1500. If the company charges this customer an annual premium of $50, what is the company's expected value of this insurance policy?
- If the expected value for a five dollar raffle ticket is $0.85, then there is a 85% chance that the ticket will win.A charity organization sells 4000 raffle tickets for 5 each for a chance to win a grand prize of $4000 or one of 8 second prizes of 500. What is the expected value for a person who buys one ticketFive hundred raffle tickets are sold for $1 each, for a first prize of $200 and two second prizes of $50 each. What is the expected value if you purchase one ticket?
- You draw and keep a single coin from a bowl that contains 12 pennies, 9 dimes, and 20 quarters. What is the expected value to you?Suppose you buy 1 ticket for $1 out of a lottery of 400 tickets with only 1 being the winning ticket. The prize for the one winning ticket is $100. What is your expected value in dollar? Round your value to 0.01 dollar. For example, -0.50 means losing half a dollar.Suppose a life insurance company sells a $230,000 one-year term life insurance policy to a 20-year-old female for$240. The probability that the female survives the year is 0.999463. Compute and interpret the expected value of this policy to the insurance company.