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The following is a probability distribution for the number of credit cards a person has. Number of Credit Cards 0 1 3 Probability: 0.200.30 0.200.15 0.10 0.05 a) Calculate the expected value or average number of credit cards a person has. Show Wor b) Interpret what that expected value mean in context to this scenario. 4,

The following is a probability distribution for the number of credit cards a person has. Number of Credit Cards 0 1 3 Probability: 0.200.30 0.200.15 0.10 0.05 a) Calculate the expected value or average number of credit cards a person has. Show Wor b) Interpret what that expected value mean in context to this scenario. 4,

College Algebra
College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 11ECP: A manufacturer has determined that a machine averages one faulty unit for every 500 it produces....
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The following is a probability distribution for the number of credit cards a person has. Number of Credit Cards 0 1 3 4 5 Probability: 0.20 0.30 0.20 0.15 0.10 0.05 a) Calculate the expected value or average number of credit cards a person has. Show Work! b) Interpret what that expected value mean in context to this scenario. Expected Value Example 2: The Red Cross is selling raffle tickets as a fund raiser. They have 10,000 tickets to sell for $1 each. They will draw 3 winners after all the tickets are sold. The first-place winner will receive $750, second-place winner will get $500 and the third-place winner gets $250. a) Using the information above fill in the probability model in the table below: Prize: First Place Second Place Third Place None $0 Amount: Probability: b) Calculate the expected value of a ticket? Show work! c) Interpret what that expected value mean in context to this scenario.
Transcribed Image Text:The following is a probability distribution for the number of credit cards a person has. Number of Credit Cards 0 1 3 4 5 Probability: 0.20 0.30 0.20 0.15 0.10 0.05 a) Calculate the expected value or average number of credit cards a person has. Show Work! b) Interpret what that expected value mean in context to this scenario. Expected Value Example 2: The Red Cross is selling raffle tickets as a fund raiser. They have 10,000 tickets to sell for $1 each. They will draw 3 winners after all the tickets are sold. The first-place winner will receive $750, second-place winner will get $500 and the third-place winner gets $250. a) Using the information above fill in the probability model in the table below: Prize: First Place Second Place Third Place None $0 Amount: Probability: b) Calculate the expected value of a ticket? Show work! c) Interpret what that expected value mean in context to this scenario.
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