-1000 tickets for prizes are sold for $2 each. Seven prizes will be awarded - one for $400, one for $200, and five for $50. Steven purchases one of the tickets.
a) Find the expected value
b) Find the fair price of the ticket.

-During the last hour, a telemarketer dialed 20 numbers and reached 4 busy signals, 3 answering machines, and 13 people. Use this information to determine the empirical probability that the next call will be answered in person.

Solution Preview

Emperical probability and expected value
-1000 tickets for prizes are sold for $2 each. Seven prizes will be awarded - one for $400, one for $200, and five for $50. Steven purchases one of the tickets.
a) Find the expected value

We know that the probability winning $400 is 1/1000; the probability winning $200 ...

Solution Summary

193 words of basic explanation and calculation to find expected value and fair price for a ticket as well as the empirical probability of a call being answered in person.

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... The prior probabilities are P(Constant Demand)=0.7 and P(Less ... in the problem above, what is t he probability t hat t ... Use t he empirical rule (68-95-99.7) = (5 j ...

...Empirical rule states that for a normal distribution, About 68 ... 1. The figure below shows the probability histogram for the total ... (a) The expected value for the ...

... of 36=6. So, using the Empirical Rule, an ... X is a random variable, and the expected value of X ... The emergency call rates for statistical probability is examined ...

... is the case, what would the probability be; would it ... An actual, or empirical, distribution would be based on ... to used z-scores to determine probabilities that a ...