Expected Value Practice

Front

What is a continuous random variable?

Back

A continuous random variable is a variable that can take on any value, but only within a certain range or interval.

Front

What is the expected value in a raffle ticket scenario where you buy a ticket for $2 and the prizes are $100, $50, and five $20 gift cards?

Back

You expect to lose an average of $1.50.

Front

What does it mean when a game is considered to be a 'fair game'?

Back

The expected value is zero.

Front

Calculate the expected value of a spinner where red is 40% ($23), yellow is 15% ($175), and green is 45% (-$50).

Back

The expected value is $12.95.

Front

In a community where 30% of households have 1 child, 43% have 2 children, and 27% have 3 children, what is the expected number of children in a randomly selected household?

Back

The expected number of children is 1.97.

Front

Define expected value in probability.

Back

Expected value is the average of all possible outcomes, weighted by their probabilities.

Front

What is the formula for calculating expected value?

Back

Expected Value (EV) = Σ (Probability of Outcome × Value of Outcome).

Front

What is a discrete random variable?

Back

A discrete random variable is a variable that can take on a countable number of values.

Front

What is the difference between a fair game and an unfair game in terms of expected value?

Back

A fair game has an expected value of zero, while an unfair game has a positive or negative expected value.

Front

How do you calculate the expected value of a game with multiple outcomes?

Back

Multiply each outcome's value by its probability and sum the results.