Expected Value
Objectives:
- Determine
the expected value of an event.
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Vocabulary:
- expected
value
- decision
theory
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Possible
Classroom Examples:
- Of
all workers at a certain factory, the proportions earning certain
hourly wages are as follows:
hourly wage
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$8.50
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$9.00
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$9.50
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$10.00
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$12.50
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$15.00
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proportion
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20%
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15%
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25%
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20%
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15%
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5%
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- Find
the expected hourly wage that a worker at this factory makes.
- Suppose
you are taking a multiple-choice test where each questions has choices
a through e. If you get the answer correct, you get 4 points. If you
get a wrong answer, you lose 1 point.
- Find
the expected value of a random guess.
- Find
the expected value of eliminating one answer and guessing between the
remaining 4 possible answers.
- Find
the expected value of eliminating three answers and guessing between
the remaining 2 possible answers.
- Use
decision theory and your answers to parts a, b, and c to create a
guessing strategy for this multiple-choice test.
© 2007 Elizabeth E. K. Jones and the
ASU
Department of
Mathematics and Statistics - All rights reserved.