6.2 Expected Value Flashcard

Front

What is the expected value of a random variable?

Back

The expected value is the long-term average or mean of a random variable, calculated as the sum of all possible values, each multiplied by its probability.

Front

How do you calculate the expected value?

Back

Multiply each possible outcome by its probability, and add each product together.

Front

What is a discrete random variable?

Back

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

Front

What is a continuous random variable?

Back

A continuous random variable can take on an infinite number of values within a given range.

Front

If a spinner has sections labeled 3, 4, 4, 5, and 6, what is the probability of landing on 4?

Back

Front

In a spinner spun 75 times, how many times would you expect it to land on 4?

Back

Front

What is the formula for expected profit in a business scenario?

Back

Expected profit = (Selling Price - Cost Price) x Number of Units Sold.

Front

If a car dealer buys hybrids for $21,000 and sells them for $24,500, what is the expected profit per car?

Back

The expected profit per car is $3,500, calculated as $24,500 - $21,000.

Front

What is the expected value of the following outcomes: -5 with probability 0.4, 1 with probability 0.35, and 8 with probability 0.25?

Back

Front

What does it mean if an experiment has a discrete random variable?

Back

It means the outcomes can be counted and are distinct, such as the number of heads when tossing coins.