A cash prize of $1,000 is to be awarded by the Alpine Fireman Association. Suppose that 1500 tickets are sold at $1 each, and let x be the payoff.
1. Construct a probability distribution table for the payoff,x.
2. Find the expected payoff.
2007-01-20 13:17:16 · 3 answers · asked by sandeepownzzz 1 in Science & Mathematics ➔ Mathematics
1. Payoff(x) = 1000 P(1000) = 1/1500
Payoff(x) = 0 P(0) = 1499/1500
2. E(X) = 1000P(1000) + 0P(0)
= 1000*(1/1500) + 0
= 1000/1500 = 2/3
2007-01-20 13:29:03 · answer #1 · answered by Modus Operandi 6 · 0⤊ 0⤋
Having taken a number of university level statistics courses, I would tend to question any statistical results posted anywhere. There are so many vairables that for the most part, statistics are irrelevant in serving as an accurate predictor of much of anything. BB, Raji the Green Witch
2016-05-24 02:50:21 · answer #2 · answered by Laura 4 · 0⤊ 1⤋
x can take two values here: 0 and 1000.
P(x=1000) = 1/1500, if x = 1000
P(x = 0) = Prob that the particular individual does not win
= Prob that any of the other 1499 individuals win
= 1499/1500
So the distribution table is as follows:
x P(x)
--------------------------
0 1499/1500
1000 1/1500
otherwise 0
E(x) = sum(x * P(x))
= 1000 / 1500 = 2/3 = 0.6667
2007-01-21 19:25:15 · answer #3 · answered by so-so 2 · 0⤊ 0⤋