Quiz about Expected Value

Question 1

If the expected value is negative, are you expected to win?

Accepted Answer

no

Answer

yes

Question 2

Eva flips a coin. If she gets heads, she wins $4. If she gets tails, she loses $3. What is her expected value of a coin flip?

Accepted Answer

$0.50

Answer

$1

Answer

-$0.50

Answer

$0

Question 3

Suppose you buy a ticket for $6 out of a lottery of 1000 tickets where the prize for the one winning ticket is $800. What is the expected value (after paying for the ticket)?

Accepted Answer

-$5.20

Answer

$800

Answer

-$6.50

Answer

-$6

Question 4

A student group sells 500 raffle tickets for $2 each. At the drawing the top prize will be a gift certificate for $100. Second prize will be a $50 gift card and there will be five 3rd prizes, each a $20 gift card. Do you expect to win or lose (on average)? How much?

Accepted Answer

lose an average of $1.50

Answer

lose an average of $5.50

Answer

win an average of $2.00

Answer

lose an average of $10.00

Question 5

In a certain community, 30% of households have 1 child, 43% have 2 children, and 27% have 3 children. If a household is selected at random, what is the expected number of children in that household?

Accepted Answer

1.97

Answer

2.00

Answer

2.13

Answer

1.27

Question 6

You pick a card from a deck. If you get a face card (12/52), you win $5. If you get an ace (4/52), you win $30. For any other card (26/52), you win nothing. Find the expected value you will win.

Accepted Answer

$3.46

Answer

$5.00

Answer

$3.55

Answer

$4.04

Question 7

A game involves rolling a colored die with three red sides, two green sides, and one blue side. A roll of a red loses. A roll of green wins $2.00. A roll of blue wins $5.00. The charge to play the game is $2.00. What is the expected value

Accepted Answer

-$0.50

Answer

$0

Answer

$.67

Answer

$-1.50

Question 8

If the expected value is positive, are you expected to win?

Accepted Answer

yes

Answer

no

Question 9

Suppose you pay $1.00 to roll a fair die with the understanding you will get $3.00 back rolling a 4 or a 2, and nothing otherwise.  What is the expected amount you win?

Accepted Answer

$0.00

Answer

-$1.00

Answer

$1.00

Answer

$3.00

Question 10

Is your expected value always going to be what happens in real life?

Accepted Answer

no

Answer

yes

Question 11

Expected value is

Accepted Answer

all of the above.

Answer

an average.

Answer

a predicted value of a game.

Answer

the sum of the values multiplied by their probabilities.

Question 12

Find the mean (expected value) of the probability distribution.

Accepted Answer

84.4

Answer

85

Answer

83.2

Answer

87.1

Question 13

Choose an American household at random. What is the expected number of cars for that household?

Accepted Answer

1.75

Answer

1.84

Answer

2.00

Answer

2.50

Question 14

Given the probability model in the table below, what is the expected value of the random variable?
X 50 20 5
P(X) 0.1 0.3 0.6

Accepted Answer

14

Answer

4.67

Answer

5

Answer

7.5

Question 15

A stockbroker estimates that at the end of the year, there is a 40% chance a stock will be worth $50, a 35% chance it will be worth $60 and a 25% chance it will be worth $70.
What expected value does this broker assign to this stock's end-of-the-year price?

Accepted Answer

$58.50

Answer

$60.00

Answer

$62.50

Answer

$65.00

Question 16

You roll a standard die. You win $12 if you roll a six, $6 if you roll a one, and $0 if you roll anything else. What is the expected value of a single roll?

Accepted Answer

$3

Answer

$18

Answer

$9

Answer

$2

Question 17

A small store keeps track of the number X of customers that make a purchase during the first hour that the store is open each day. Based on the records, X has the following probability distribution. What is the average number of customers that the owner can expect to make a purchase in the first hour of opening?

Accepted Answer

3.0

Answer

0.2

Answer

1.4

Answer

2.0

Question 18

Find the expected value.

Accepted Answer

0.6

Answer

0.4

Answer

0

Answer

1.1

Expected Value

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