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The document describes a probability distribution for a random variable X. It provides the values x can take on, the probabilities P(X=x), and calculates the expected value of X by multiplying each value x by its probability P(X=x) and summing the results. For the first example, the expected value is calculated to be 1.85.

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Joshua Neil Carigo
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1K views

Questions N Solutions

The document describes a probability distribution for a random variable X. It provides the values x can take on, the probabilities P(X=x), and calculates the expected value of X by multiplying each value x by its probability P(X=x) and summing the results. For the first example, the expected value is calculated to be 1.85.

Uploaded by

Joshua Neil Carigo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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X is a discrete random variable. The table below defines a probability distribution for X.

What is the expected value of X?

x P(X = x)
0 0.17
1 0.14
2 0.36
3 0.33

a. 1.85
b. 1.30
c. 1.55
d. 0

Step 1. Let's multiply each value by its probability.

x P(X = x) x ⋅ P(X = x)
0 0.17 0
1 0.14 0.14
2 0.36 0.72
3 0.33 0.99
Step 2. The expected value of X is 0 + 0.14 + 0.72 + 0.99 = 1.85
X is a discrete random variable. The graph below defines a probability distribution for X.

What is the expected value of X?

a. -5
b. -10
c. -15
d. -20

Step 1. Let's put the probabilities from the graph into a table.

x P(X = x)
-50 0.35
-25 0.25
0 0.15
25 0.15
50 0.1

Step 2. Now we can easily multiply each value by its probability.

x P(X = x) x ⋅ P(X=x)
-50 0.35 -17.5
-25 0.25 -6.25
0 0.15 0
25 0.15 3.75
50 0.1 5

Step 3. The expected value of X is (-17.5) + (-6.25) + 0 + 3.75 + 5 = -15


X is a discrete random variable. The table below defines a probability distribution for X.

What is the expected value of X?

x P(X = x)
2 0.06
3 0.42
7 0.52

a. 1.32
b. 3.40
c. 9.80
d. 5.02
Step 1. Let's multiply each value by its probability.

x P(X = x) x ⋅ P(X = x)
2 0.06 0.12
3 0.42 1.26
7 0.52 3.64

Step 2. The expected value of X is 0.12 + 1.26 + 3.64 = 5.02


X is a discrete random variable. The graph below defines a probability distribution for X.

What is the expected value of X?

a. 0
b. 2.5
c. 1.1
d. 0.3

Step 1. Let's put the probabilities from the graph into a table.

x P(X = x)
0 0.35
1 0.35
2 0.15
3 0.15

Step 2. Now we can easily multiply each value by its probability.

x P(X = x) x ⋅ P(X=x)
0 0.35 0
1 0.35 0.35
2 0.15 0.3
3 0.15 0.45

Step 3. The expected value of XXX is 0 + 0.35 + 0.3 + 0.45 = 1.1


In a recent little league softball game, each player went to bat 4 times. The number of hits made by each
player is described by the following probability distribution.

Probability,
Number of hits, x
P(x)

0 0.10

1 0.20

2 0.30

3 0.25

4 0.15

a. 1.00
b. 1.75
c. 2.00
d. 2.15

The mean of the probability distribution is 2.15, as defined by the following equation.

E(X) = Σ [ xi * P(xi) ]
E(X) = 0*0.10 + 1*0.20 + 2*0.30 + 3*0.25 + 4*0.15 = 2.15
Joseph just bought a brand new cell phone and a warranty for the cell phone. The warranty cost 300
pesos and is worth 800 pesos if his phone breaks. Joseph estimates that there is a 20% chance of his
phone breaking.

Joseph calculates the expected value of buying the warranty to be -140 pesos.

Which of the following statements are true?

Choose all answers that apply:

a. Joseph will certainly lose value from the warranty.


b. Joseph will certainly gain value from the warranty.
c. If Joseph was going to buy a large number of phones, and he bought the warranty on each
phone, he should expect to lose value from the warranties.

Solution:

 We don't know whether the phone will break or not, so we cannot be certain whether Joseph
will gain value or lose value from the warranty.
 An expected value of -140 pesos tells us that if Joseph were going to buy a large number of
phones and a warranty on each phone, he should expect to lose, on average, -140 pesos per
warranty.
 The only true statement is given below:
C. If Joseph was going to buy a large number of phones, and he bought the warranty on each
phone, he should expect to lose value from the warranties.
Alice is riding the train to her job in Paris, France. She accidentally purchased a ticket for zone 4, but she
is travelling to zone 5. She has decided to risk it and stay on the train until zone 5 with the incorrect
ticket. If the transit authorities check tickets on the train, she will have to pay a fine.

Alice estimates that there is a 5% chance that the transit authorities will check tickets. The fine for
having the wrong ticket is 300 pesos. The ticket she purchased cost her 5 pesos.

Find the total expected cost of Alice's train ride.

a. 10 pesos
b. 20 pesos
c. 30 pesos
d. 40 pesos

Step 1. Alice estimates that there is a 5%, percent chance of the transit authorities checking tickets. If
this happens, the cost is 5 + 300 = 305 pesos (the cost of the original ticket plus the fine).

Step 2. According to the estimate, there is a 95% percent chance the transit authorities do not check
tickets. In this case, the cost is 5 pesos (just the cost of the original ticket).

Step 3. Let's multiply each cost by its probability because expected cost is the sum of all possible costs,
each cost multiplied by its probability.

Cost Probability Cost ⋅ Probability


Transit authorities check tickets 305 0.05 15.25
Transit authorities do not check tickets 5 0.95 4.75

Step 4. The expected cost is 15.25 + 4.75 = 20 pesos

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