Make a probability model for this game. Compute the expected value for this game. Should you play this game? A company estimates that 0.7% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $350. If they offer a 2-year extended warranty for $48, what is the company's expected value of each warranty sold? An insurance company estimates the probability of an earthquake in the next year to be 0.0013. The average damage done by an earthquake it estimates to be $60,000. If the company offers earthquake insurance for $100, what is expected value of the policy You purchase a raffle ticket to help out a charity. The raffle ticket costs $5. The charity is selling 2000 tickets. One of them will be drawn and the person holding the ticket will be given a prize worth $4000. Compute the expected value for this raffle. At the fair there is a game in which folks are betting where a chicken will poop on a 5 by 5-foot grid. (There are 25, 1 by 1 squares to choose from) You can buy a 1 by 1-foot square for $10 and if the chicken poops on your square you win $100. Find the expected value for this game. Create a problem using the concept of expected value. Possible topics include insurance policies, financial decisions, gambling and lotteries. Determine the expected value of the situation you created.
Make a probability model for this game. Compute the expected value for this game. Should you play this game? A company estimates that 0.7% of their products will fail after the original warranty period but within 2 years of the purchase, with a replacement cost of $350. If they offer a 2-year extended warranty for $48, what is the company's expected value of each warranty sold? An insurance company estimates the probability of an earthquake in the next year to be 0.0013. The average damage done by an earthquake it estimates to be $60,000. If the company offers earthquake insurance for $100, what is expected value of the policy You purchase a raffle ticket to help out a charity. The raffle ticket costs $5. The charity is selling 2000 tickets. One of them will be drawn and the person holding the ticket will be given a prize worth $4000. Compute the expected value for this raffle. At the fair there is a game in which folks are betting where a chicken will poop on a 5 by 5-foot grid. (There are 25, 1 by 1 squares to choose from) You can buy a 1 by 1-foot square for $10 and if the chicken poops on your square you win $100. Find the expected value for this game. Create a problem using the concept of expected value. Possible topics include insurance policies, financial decisions, gambling and lotteries. Determine the expected value of the situation you created.
Chapter4-Probability9-7-18.docx