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