1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
STatiana [176]
3 years ago
13

Suppose you want to play a carnival game that costs 7 dollars each time you play. If you win, you get $100. The probability of w

inning is 1⁄50. What is the expected value of the amount that you, the player, stand to gain?

Business
2 answers:
lilavasa [31]3 years ago
8 0

Answer:

The correct answer would be $5

Explanation:

The formula to use is "Expected return to player" which is

E(x) = x.p(x)

where x is the return to player if they win

and p(x) is the probability of winning.

So here,

x = $100 (return to player for winning)

p(x) = 1/50 (probability of winning)

Therefore expected return to player is

E(x) = x.p(x)

= $100 x 1/50

= $100/50

= $2

Cost: $7

Expected return to player is $2.

Therefore Loss (to player) is Cost minus Expected return

= $7 - $2 = $5 <---- expected value for the carnival to gain,

The loss to the player is the carnival's gain. It's $5.

ololo11 [35]3 years ago
6 0

There is a loss of \bf \$\ 5 to the player in carnival game.

Further explanation:

In the question it is given that in a carnival game it costs \$\ 7 to play each time.

The amount of money received after winning a game is \$\ 100.

The probability of winning a game is \frac{1}{50}.

Consider the probabilityof winning a game as P.

The probablity of lossing a game is calculated as follows:

\begin{aligned}P'&=1-P\\&=1-\dfrac{1}{50}\\&=1-0.02\\&=0.98\end{aligned}

Consider the amount of money received by winning a game as X.

Expected return to player is calculated as follows:

\boxed{\text{E}(X)=XP(X)}                          ......(1)

If a person won a game then he must received \$\ 100 and the amount of money paid for playing one game is  \$\ 7.

This implies that in winning a game there is a gain of \$\ 93 and if a player lost a game then there is a loss of \$\ 7.

Figure 1 (attached in the end) represents the different cases of winning and loosing.

Using the equation (1), the expected value of the amount to be received by a player is calculated as follows:

\begin{aligned}\text{E}(x)&=\left(93\cdot 0.02\right)+\left((-7)\cdot 0.98\right)\\&=1.86-6.86\\&=-5\end{aligned}

The value of \text{E}(x) as obtained above is -5 which is a negative value.

The negative value \text{E}(x) implies that there is a loss to the player of \$\ 5.

Thus, there is a loss of \bf \$\ 5 to the player in carnival game.

Learn more:

1. A problem to determine the equation of line brainly.com/question/1646698

2. A problem on ray brainly.com/question/1251787

3. A problem to determine intercepts of a line brainly.com/question/1332667  

Answer details:

Grade: High school

Subject: Mathematics

Chapter: Probability

Keywords: Probabilty, expected value, loss, profit, carnival game, 7 dollars, win $100, 1/50, winning, expected return, mathematics, sample space, money gain, money paid.

You might be interested in
Joanne owns a bakery that has been in business for over three years. Lately, she hasn't
denpristay [2]

Answer:

She shouldmove maybe 1 of the employees as manager that manages the taxes and general paperwork and give the employees what to do each week or just each shift if thats working but it doesnt seem too productive

Explanation:

7 0
3 years ago
The Whalers are interested in trading their star left tackle. He is a veteran and makes $1.6 million per year. They are consider
Romashka-Z-Leto [24]

Answer:

$1,800,000

Explanation:

The veteran player makes $1.6 million per year.

The new prayer will be paid $1 million per year.

the Savings per year will be

= $1, 600,000 - 1,000,000

= $ 600,000

The savings in three years will be

=$600,000 x 3

=$1,800,000

3 0
3 years ago
A manager states that his process is really working well. Out of 1,500 parts, 1,477 were produced free of a particular defect an
worty [1.4K]

Answer:

, other things being equal?DPMO= # of defects/# of opportunities for error per unit x # of units (1,000,000)DPMO= 23/1500 x 1,000,000 or DPMO= 23/1,500,000,000 or DPMO= 1.53The 1.53 is within the target specification of Six Sigma. This performance is rated as within limits means the process is working well. The product is within the limits of the defects allowed based off the1500 parts or the “four defects per million units

Explanation:

5 0
3 years ago
Syd is an economist putting together an economic model to predict the outcome from particular causes and effects in the economy.
Sholpan [36]

Answer:

The correct answer is (B)

Explanation:

Economists are helpful to predict future economic and financial phenomenon’s.  In that regard, statistical or mathematical models are considered more appropriate and it is said that they provide better results. In the above scenario, Syd is attempting to construct an economic model for that, the suitable technique to examine the cause and effect to predict the outcomes are mathematical functions. The reason is that mathematical models are more appropriate to predicts cause and effect.

8 0
3 years ago
If a company abandons a segment of its operation, the loss would be reported on the a.income statement immediately after cost of
kvv77 [185]

Answer:

d.income statement immediately after income from continuing operations.

Explanation:

We should look at what the accounting principles and normatives threatment suggest.

As the firm should firm indicate the resulf the going business the discontinued operation should be disclosure separately from it. Thus, once complete the disclosure of the continued operation the firm should post the loss on this discontinued operation

7 0
3 years ago
Other questions:
  • When a firm expects rapid imitation of its core technology by competitors, what should it do? A. Revert to old technologies B. O
    8·2 answers
  • Wanda is the Chief Executive Officer of Pink corporation, a publicly traded, calendar year C corporation. For the current year,
    13·1 answer
  • Cyber Security Systems had sales of 4,600 units at $65 per unit last year. The marketing manager projects a 30 percent increase
    8·1 answer
  • Which of the following would most likely make the demand for an item more elastic?
    12·2 answers
  • Which of the following is the most authoritative source of tax law?
    15·1 answer
  • Winnebago Industries, Inc. is a leading manufacturer of motor homes. Suppose Winnebago reported ending inventory at August 29, 2
    11·1 answer
  • On January 15, 2021, Vancey Company paid property taxes on its factory building for the calendar year 2021 in the amount of $1,0
    12·1 answer
  • The first step in the process of creating a marketing plan is to
    14·2 answers
  • A firm using a _____ strategy tries to balance the desire for efficiency with the need to adjust to local preferences within var
    14·1 answer
  • All of the following are positive outcomes of employee development except: Group of answer choices development enhances the orga
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!