There is a 0.1081 probability that a best-of-seven contest will last four games, a 0.1171 probability that it will last five games, a 0.2466 probability that it will last six games, and a 0.5282 probability that it will last seven games. Verify that this is a probability distribution. Find its mean and standard deviation. Is it unusual for a team to "sweep" by winning in four games?
a. What is the mean of the probability distribution (Round to two decimal places as needed) ________.
b. What is the standard deviation of the probability distribution (Round to two decimal places as needed) _______
Is it unusual for a team to win in four games? Choose the correct response below.
(1) Yes, because the probability that a team wins in four games is less than or equal to 0.05
(2) No, because the probability that a team wins in four games is greater than 0.05
(3) No, because the probability that a team wins in four games in less than or equal to 0.05
(4) Yes, because the probability that a team wins in four games is greater than 0.05
The solution describes the determination of the mean and standard deviation of a probability distribution.
A young engineer has invented holographic mobile phones and has approached a venture capital company to invest in it. The venture capital company considers the product to be an all or nothing product: either everyone will want one because everyone else has one or no one will want one because there will be no one to use it with. The company believes that the probability that it will take off netting them a profit of $2000000 is 0.14. If it doesn't take off then they expect that they would loose $200000. They are considering using a consumer survey to gather more information. However, the company has experience that shows that the probability that the consumer survey will predict success for a product that will fail is 0.24, and the probability that the consumer survey will predict failure when the product will be a success is 0.07. What is the monetary value of the information from a consumer survey to the venture capital company in this case? (ie what is the maximum that they should spend on a consumer survey)?View Full Posting Details