Suppose a company in the US is buying some parts from a supplier in Japan. The US firm has to pay for the parts next month. Suppose they believe the value of the Yen-Dollar exchange rate in 1 month is given by the following probability distribution: the believe there is a probability of 0.22 that $1 will exchange for 85 Yen, there is a probability of 0.19 that $1 will exchange for 90 Yen, there is a probability of 0.35 that $1 will exchange for 95 Yen, and with the remaining probability that $1 will exchange for 100 Yen. What is the expected value of the number of Yen that $1 will exchange for?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Suppose a company in the US is buying some parts from a supplier in Japan. The US firm has to pay for the parts next month. Suppose they believe the value of the Yen-Dollar exchange rate in 1 month is given by the following probability distribution: the believe there is a probability of 0.22 that $1 will exchange for 85 Yen, there is a probability of 0.19 that $1 will exchange for 90 Yen, there is a probability of 0.35 that $1 will exchange for 95 Yen, and with the remaining probability that $1 will exchange for 100 Yen. What is the expected value of the number of Yen that $1 will exchange for?
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