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Introduction to Probability Distributions

Four possible prizes are being awarded by a real estgat developer to people who will look at new property. The prizes are being awarded based on a blind drawing with the following probability distribution:

x P(x)
$ 10 0.80
$ 20 0.10
$ 100 0.08
$ 1000 0.02

a What is the expected prize award?
b What is the standard deviation for the prize award?
c If one person is allowed to have two chances at the drawing and keep the
highest prize, what is the probability that she will leave with at least $100?

Solution Summary

This Solution contains calculations to aid you in understanding the Solution to these questions.