1) Suppose that a school has 20 classes: 16 with 25 students in each, three with 100 students in each, and one with 300 students, for a total of 1000 students.
a) What is the average class size?
b) Select a student randomly out of the 1000 students. Let the random variable X equal the size of the class to which this student belongs, and define the p.m.f. of X.
c) Find E(X), the expected value of X. Does this answer surprise you?

2) In the casino game called high-low, there are three possible bets. Assume that $1, is the size of the bet. A pair of six-sided dice is rolled and their sum is calculated. If you bet low, you win $1 if the sum of the dice is {2,3,4,5,6}. If you bet high, you win $1 if the sum of the dice is {8,9,10,11,12}. If you bet on {7}, you win $4 if a sum of 7 is rolled. Otherwise you lose on each of the three bets. In all three cases, your original dollar is returned if you win. Find the expected value of the game to the bettor for each of these three bets.

... of the best act without certainty is the expected: a. monetary ... c. value of perfect information ... advertising campaign is successful, the company expects sales to ...

... 5, P(average) = .3, P(high) = .2. Determine the production facility size that maximizes expected profits and find the expected value of perfect information. ...

... the stock 3 years from now to be $ 34.73; that is, you expect P 3 to equal $ 34.73. Discounted at a 12 what is the present value of this expected future stock ...

... The investor expects that the price of the underlying stock ... no effect on revenues, but it is expected to save ... by small investors company may expect an increase ...

... Bayes' Theorem. Random Variable. Expected Value. Variance Probability Distribution. Cumulative Distribution Function. Probability Density Function. ...Expected Value...

... prices for selling the fashion items in two demand phases and hence using the two different demand functions with different slopes, the expected value of the ...

... Its earnings are expected to grow at a constant rate of 12% for the ... 12. XYZ Company is expecting its return on equity to equal 25% and expects to pay 40 ...

... First, we expect that local economic institutions inï¬‚uence the market ... the costs of constructing reliable fair value estimates are expected to be a ...

... c. a lower expected value. d. both a and b e. all of the above. ... 9. In making decisions under risk a. maximizing expected value is always the best rule. ...

... has a 15% profit margin and is expected to be ... Cost of common equity 9.22% =(dividend/Stock price) + growth 10 ...expects to pay a $3.58 in flotation cost to issue ...