Math, asked by nehasingh5879, 1 year ago

Mean and variance of a continuous random variable example

Answers

Answered by thara1724
1

hey mate !

Here is your answer.

Suppose an individual plays a gambling game where it is possible to lose $1.00, break even, win $3.00, or win $10.00 each time she plays. The probability distribution for each outcome is provided by the following table:

Outcome  -$1.00 $0.00 $3.00 $5.00  

Probability   0.30  0.40  0.20  0.10  

The mean outcome for this game is calculated as follows:  

= (-1*.3) + (0*.4) + (3*.2) + (10*0.1) = -0.3 + 0.6 + 0.5 = 0.8.  

In the long run, then, the player can expect to win about 80 cents playing this game -- the odds are in her favor.

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