There are 2 coins in a bin. When one of them is flipped, it lands on heads with probability .6, and when the other is flipped, it lands on heads with probability .3. One of these coins is to be randomly chosen and then flipped. Without knowing which coin is chosen, you can bet any amount up to $10, and you then either win that amount if the coin comes up heads or lose it if it comes up tails. Suppose, however, that an insider is willing to sell you, for an amount C, the information as to which coin was selected. What is your expected payoff if you buy this information? Note that if you buy it and then bet x, you will end up either winning x − C or − x − C (that is, losing x + C in the latter case). Also, for what values of C does it pay to purchase the information?
There are 2 coins in a bin. When one of them is flipped, it lands on heads with probability .6, and when the other is flipped, it lands on heads with probability .3. One of these coins is to be randomly chosen and then flipped. Without knowing which coin is chosen, you can bet any amount up to $10, and you then either win that amount if the coin comes up heads or lose it if it comes up tails. Suppose, however, that an insider is willing to sell you, for an amount C, the information as to which coin was selected. What is your expected payoff if you buy this information? Note that if you buy it and then bet x, you will end up either winning x − C or − x − C (that is, losing x + C in the latter case). Also, for what values of C does it pay to purchase the information?
Solution Summary: The author explains the expected payoff and the value of C required to purchase the information.
There are 2 coins in a bin. When one of them is flipped, it lands on heads with probability .6, and when the other is flipped, it lands on heads with probability .3. One of these coins is to be randomly chosen and then flipped. Without knowing which coin is chosen, you can bet any amount up to $10, and you then either win that amount if the coin comes up heads or lose it if it comes up tails. Suppose, however, that an insider is willing to sell you, for an amount C, the information as to which coin was selected. What is your expected payoff if you buy this information? Note that if you buy it and then bet x, you will end up either winning
x
−
C
or
−
x
−
C
(that is, losing
x
+
C
in the latter case). Also, for what values of C does it pay to purchase the information?
Among a student group 54% use Google Chrome, 20% Internet Explorer, 10% Firefox, 5% Mozilla, and the rest use Safari. What is the probability that you need to pick 7 students to find 2 students using Google Chrome? Report answer to 3 decimals.
Samples of rejuvenated mitochondria are mutated (defective) with a probability 0.13. Find the probability that at most one sample is mutated in 10 samples. Report answer to 3 decimal places.
The same final exam of the astronomy course was given to two groups of students. The maximum number of points that a student can score is 100. The first group consisted of a random sample of 10 students who were taught by Professor A. Students from the first group obtained the following results:
87 88 91 88 86 92 81 93 73 99
The second group consisted of a random sample of 9 students who were taught by Professor B. Students from the second group obtained the following results:
74 74 79 97 67 88 86 83 78
Compute the mean squares of between-group variability, MSBET. Round your answer to two decimal places.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.
Discrete Distributions: Binomial, Poisson and Hypergeometric | Statistics for Data Science; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=lHhyy4JMigg;License: Standard Youtube License