Recall that the expected value of a random variable is the average result in the long run of many trials. We've seen how the expected value can be useful in analyzing benefits or making decisions in topics such as gambling and insurance. Try to think of another application where knowing the expected value of a quantitative result can help you to make a more informed decision. 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 quantitative variable 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?
Recall that the expected value of a random variable is the average result in the long run of many trials. We've seen how the expected value can be useful in analyzing benefits or making decisions in topics such as gambling and insurance. Try to think of another application where knowing the expected value of a quantitative result can help you to make a more informed decision. 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 quantitative variable 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?
Chapter9: Sequences, Probability And Counting Theory
Section9.7: Probability
Problem 1SE: What term is used to express the likelihood of an event occurring? Are there restrictions on its...
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Transcribed Image Text:Recall that the expected value of a random variable is the average result in the long run of many trials. We've seen how
the expected value can be useful in analyzing benefits or making decisions in topics such as gambling and insurance. Try
to think of another application where knowing the expected value of a quantitative result can help you to make a more
informed 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 quantitative
variable 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?
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