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PRINCIPLES OF STATISTICS I (WEST CHARLESTON)  ECON  261  PROBLEM SET #9  1 .  Y ou have been g i ve the  choice  of  receiving $500 in cash  or  rece i ving  go l co i n that has a face value  of  $100 However the  actual value  of  t h e gold  co i n d e pends on  the  go l d content. You are told that the coin  has a  40 chance  of  being worth  $400 a 30 , chance  of  being  w orth  $900 and  30 chance  of  being worth its  face  value. Basing  your  decision on expected  value should you choose the coin?  Questions  3 Use  binomial  formula,  verify  with  Excel  Command  BINOMDST  2 An  Amer i can  Soc i ety  of  Investors survey found 30 percent  of  ind i vidual inves t ors have used a d i scount  broker In a random sample  of  nine  individuals what  is  the  probability:  ( a  E x actly  two  of  the  sampled individuals have used a discoun broker?  E)(n.::::J-1 ( b  E x actly  four  of  them have used a discount broker?  r:::}  ..  ~ ( c None  of  them have used a discount broker?  4~  ( d)  F i nd the  mean  (expected value)  number  of  individuals that use a discount broker?  [) .
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  • Fall '09
  • Test Answers, CSN, ECON 261, PRINCIPLE OF STATISTIC, discount broker, Charleston, select  public accounting

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