Probability and Expected Value Quiz

You draw one card from a standard deck of playing cards. If you pick a heart, you will win $10. If you pick a face card, which is not a heart, you win $8. If you pick any other card, you lose $6. Determine the expected value.

Tags

CCSS.HSS.MD.B.5A

The world-famous gambler from Philadelphia, Señor Rick, proposes the following game of chance. You roll a fair die. If you roll a 1, then Señor Rick pays you $25. If you roll a 2, Señor Rick pays you $5. If you roll a 3, you win nothing. If you roll a 4 or a 5, you must pay Señor Rick $10, and if you roll a 6, you must pay Señor Rick $15. Determine the expected value of the game.

Tags

CCSS.HSS.MD.B.5A

You pay $10 to play the following game of chance. There is a bag containing 12 balls, five are red, three are green and the rest are yellow. You are to draw one ball from the bag. You will win $14 if you draw a red ball and you will win $12 if you draw a yellow ball. How much do you expect to win or lose if you play this game 100 times?

Tags

CCSS.HSS.MD.B.5A

A detective figures that he has a one in nine chance of recovering stolen property. His out-of-pocket expenses for the investigation are $9,000. If he is paid his fee only if he recovers the stolen property, what should he charge clients to breakeven?

At Tucson Raceway Park, your horse, Soon-to-be-Glue, has a probability of 1/20 of coming in first place, a probability of 1/10 of coming in second place, and a probability of 1/4 of coming in third place. First place pays $4,500 to the winner, second place $3,500, and third place $1,500. If it costs $1,000 to enter the race, what is the expected value?

Tags

CCSS.HSS.MD.B.5A

Your company plans to invest in a particular project. There is a 30% chance that you will lose $30,000, a 20% chance that you will break-even, and a 50% chance that you will make $70,000. What is the expected value from the project?

Tags

CCSS.HSS.MD.A.2

A manufacturer is considering the manufacture of a new and better mousetrap. She estimates the probability that the new mousetrap is successful is 3/4. If it is successful, it would generate profits of $120,000. The development costs for the mousetrap is $40,000. Calculate the expected value.

Tags

CCSS.HSS.MD.A.2

A grab bag contains 12 packages worth 80 cents apiece, 15 packages worth 40 cents apiece, and 25 packages worth 30 cents apiece. If you pay 50 cents for the privilege of picking one of the packages at random, what is the expected value?

Tags

CCSS.HSS.MD.B.5A

In a multiple-choice test, each question has five possible answers. Three points are given for each correct answer but one point is deducted for each incorrect answer. What is the expected value for a question that is answered by randomly guessing the answer?

Tags

CCSS.HSS.MD.B.5A

Based on experience, a building contractor sets the probability of winning a contract at 0.10. The contract is worth $105,000 and the cost to prepare the contract proposal is $10,000. What is the expected value of the contract proposal?

Tags

CCSS.HSS.MD.B.5A