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Suppose we play the following game based on tosses of a fair coin. You pay me $10, and I agree to pay you $n 2 if heads comes up

Artyom0805 [142]

Answer:

In the long run, ou expect to lose $4 per game

Step-by-step explanation:

Suppose we play the following game based on tosses of a fair coin. You pay me $10, and I agree to pay you $n^2 if heads comes up first on the nth toss.

Assuming X be the toss on which the first head appears.

then the geometric distribution of X is:

X $\sim$ geom(p = 1/2)

the probability function P can be computed as:

$P (X = n) = p(1-p)^{n-1}$

where

n = 1,2,3 ...

If I agree to pay you $n^2 if heads comes up first on the nth toss.

this implies that , you need to be paid $\sum \limits ^{n}_{i=1} n^2 P(X=n)$

$\sum \limits ^{n}_{i=1} n^2 P(X=n) = E(X^2)$

$\sum \limits ^{n}_{i=1} n^2 P(X=n) =Var (X) + [E(X)]^2$

$\sum \limits ^{n}_{i=1} n^2 P(X=n) = \dfrac{1-p}{p^2}+(\dfrac{1}{p})^2$ ∵ X $\sim$ geom(p = 1/2)

$\sum \limits ^{n}_{i=1} n^2 P(X=n) = \dfrac{1-p}{p^2}+\dfrac{1}{p^2}$

$\sum \limits ^{n}_{i=1} n^2 P(X=n) = \dfrac{1-p+1}{p^2}$

$\sum \limits ^{n}_{i=1} n^2 P(X=n) = \dfrac{2-p}{p^2}$

$\sum \limits ^{n}_{i=1} n^2 P(X=n) = \dfrac{2-\dfrac{1}{2}}{(\dfrac{1}{2})^2}$

$\sum \limits ^{n}_{i=1} n^2 P(X=n) =\dfrac{ \dfrac{4-1}{2} }{{\dfrac{1}{4}}}$

$\sum \limits ^{n}_{i=1} n^2 P(X=n) =\dfrac{ \dfrac{3}{2} }{{\dfrac{1}{4}}}$

$\sum \limits ^{n}_{i=1} n^2 P(X=n) =\dfrac{ 1.5}{{0.25}}$

$\sum \limits ^{n}_{i=1} n^2 P(X=n) =6$

Given that during the game play, You pay me $10 , the calculated expected loss = $10 - $6

= $4

∴

In the long run, you expect to lose $4 per game

3 0

2 years ago

Is my answer correct? Please see attachment and notify me.

statuscvo [17]

Last time I checked that was about right, but it's been a few years since then.

6 0

2 years ago

Read 2 more answers

A 12.000-gallon pool is being filled at a rate of 40 gallons per minute. At this rate, how many minutes will it take to fill thi

Irina18 [472]

Answer:

2

Step-by-step explanation:

6 0

2 years ago

Add, subtract, multiply, or divide the following fractions. Remember to find the LCD first.

Nat2105 [25]

lcd 210

1/5=42/210

1/7=30/310

3/21=30/210

42+30+30=102/210

reduced 51/105

4 0

2 years ago

Tanya is training a turtle for a turtle race. For every 1/3 of an hour that the turtle is crawling, he can travel 2/23 of a mile

Oxana [17]

The unit rate with the turtle crawling is 6/23 mile per hour.

According to the statement

we have given that the every 1/3 of an hour that the turtle is crawling, he can travel 2/23 of a mile. and

we have to find the unit rate with the turtle crawling

So, For this purpose,

we know that the

The unit rate of speed in miles per hour the number of miles in one hour.

So, to find the unit rate:

Divide distance in miles with the time which is in hours.

So,

unit rate of speed = distance / time

unit rate of speed = (2/23) / (1/3)

unit rate of speed = 6/23 mile per hour.

So, The unit rate with the turtle crawling is 6/23 mile per hour.

Learn more about unit rate here

brainly.com/question/4895463

#SPJ1

8 0

4 months ago