Question 7 E Worth 5 points)
2 answers:
You might be interested in
Answer:
a). The mean = 1000
The variance = 999,000
The standard deviation = 999.4999
b). 1000 times , loss
Step-by-step explanation:
The mean of geometric distribution is given as ,
And the variance is given by,
Given :
= 0.001
The formulae of mean and variance are :
a). Mean =
=
= 1000
Variance =
=
= 999,000
The standard deviation is determined by the root of the variance.
= = 999.4999
b). We expect to have play lottery 1000 times to win, because the mean in part (a) is 1000.
When we win the profit is 500 - 1 = 499
When we lose, the profit is -1
Expected value of the mean μ is the summation of a product of each of the possibility x with the probability P(x).
= $ 0.50
Since the answer is negative, we are expected to make a loss.
Down payment is 20% of the price of the home. Since the couple saved $35,000, and assuming they will pay the whole money as down payment, the highest priced home they can get is a price whose 20% is $35,000.
We can setup an equation in x (being the price of home) to get the price of the most expensive home they can buy.
<em>Which number (x) , multiplied by 20%, is equal to $35,000?</em>
<em></em>
So, the most expensive house they can buy is worth $175,000.
ANSWER: $175,000