Expected Value Answers
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A business has an opportunity to invest $35,000. If the investment is a success, the business earns a profit of $150,000. Otherwise, the investment will result in a total loss of all monies. If the investment has 0.27 chance of success, which equation correctly models the expected value of this investment?
0
0.27(150,000) + 0.73(–35,000) = E(X)1
150,000 – 0.73(35,000) = E(X)0
0.27(150,000 – 35,000) = E(X)0
0.27(115,000) + 0.73(–35,000) = E(X)2
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Given the spinner below in which all regions are equal, which of the following point scales would result in a favorable game?
T
The odd numbered regions will add one point. The even numbered regions lose one point.R
Red will add one point. Any other color will lose one point.A
A number less than or equal to 3 will add one point.A 4 will lose two points.O
Odds will add a point value equal to the number on the space.Evens will lose a point value equal to the number on the space.3
Penny Points
E
E(penny) = –0.33 and E(nickel) = 0.33, so she should play with the nickels.E
E(penny) = 0.5 and E(nickel) = 1.5, so she should play with the nickels.E
E(penny) = 1.75 and E(nickel) = 1.5, so she should play with the pennies.E
E(penny) = 2.38 and E(nickel) = 2, so she should play with the pennies.Did you find these answers helpful?
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