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Expected Value Practice

Last updated almost 5 years ago

9 questions

Note from the author:

deals with binomial probabilities, expected earnings

6

10

8

2

Question 1

1.

A spinner numbered 1 through 10 is spun 30 times. How many times would you expect to get an even number?

2

Question 2

2.

A spinner numbered 1 through 10 is spun 80 times. What is the expected number of times you would spin a number divisible by 4?

2

2

10

6

Question 7

7.

Your company plans to invest in a particular project. There is a 35% chance that you will lose $30,000 with this investment; there is a 40% chance that you will break-even with this investment; and there is a 25% chance that you will make $55,000 with this investment. Based only on this given information, what should you tell the CEO of your company to do?

Question 8

8.

There is a raffle for a local charity event. The prizes along with their cash value and probability of winning are shown in the table below. Complete all parts and include your support work.

Question 9

9.

In New Jersey's Pick 4 Lottery game, you pay $1 to select a sequence of four digits--repetition is allowed and order matters. If you correctly select the same sequence of four digits that are drawn, you win $3,000. Complete all parts and include your support work.

Question 3

3.

A pair of dice is rolled 72 times. What is the expected number of times you would roll a sum of 7?

Question 4

4.

A pair of dice is rolled 90 times. What is the expected number of times you would roll a sum of 11?

Question 5

5.

The world famous high roller from Philly, Señor Ricardo, proposes the following game of chance when rolling a fair die. If you roll a 1 then Señor Ricardo pays you $25; if you roll a 2 then Señor Ricardo pays you $5; if you roll a 3 then you do not win or lose any amount; if you roll a 4 or a 5 then you must pay Señor Ricardo $10; if you roll a 6 then you must pay Señor Ricardo $15. Complete the table to help with calculations to determine what you can expect to win/lose if you play Señor Ricardo's game 100 times. Is Señor Ricardo LOCO for proposing such a game?

Question 6

6.

At Tucson Raceway Park, your horse, Soon-to-be-Glue, has a probability of 1/20 of coming in first place; a probability of 1/10 of coming in second place; and a probability of 1/4 of coming in third place. First place has a pay-out of $4,500, second place has a pay-out of $3,500, and third place has a pay-out of $1,500. How much would you expect to earn from Soon-to-be-Glue if you entered him in 20 races at Tucson Raceway Park? If the Tucson Raceway Park charges a fee of $500 per race for you to enter your horse, will you expect to make or lose money overall with your beloved Soon-to-be-Glue?