Week 2 HW Solutions

Week 2 HW Solutions - 41.7536 0.0560 1 + PB $3.46 11.9834...

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EC315: Week 2 Homework Solutions 36. Divisions Payout(x) Odds Probability(x) xP(X) 5 + PB $50,000,000 146107962 0.000000006844 $0.34220 match 5 $200,000 3563609 0.000000280614 $0.05612 4 + PB $10,000 584432 0.000001711060 $0.01711 match 4 $100 14255 0.000070145903 $0.00701 3 + PB $100 11927 0.000083836351 $0.00838 match 3 $7 291 0.003424657534 $0.02397 2 + PB $7 745 0.001340482574 $0.00938 1 + PB $4 127 0.007812500000 $0.03125 0 + PB $3 69 0.014285714286 $0.04286 Divisions x - mean (x - mean)^2 ( x - mean)^2*P(x) 5 + PB $49,999,999.46 2499999946170530.0000 17109999.6316 match 5 $199,999.46 39999784682.3902 11224.4996 4 + PB $9,999.46 99989234.3948 171.0876 match 4 $99.46 9892.6308 0.6939 3 + PB $99.46 9892.6308 0.8294 match 3 $6.46 41.7536 0.1430 2 + PB $6.46
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Unformatted text preview: 41.7536 0.0560 1 + PB $3.46 11.9834 0.0936 0 + PB $2.46 6.0600 0.0866 The mean payout is $0.53829 and the standard deviation of the payout is 4137.8010. If the cost of a ticket is taken into account, then the mean is a loss of $0.46171 and the standard deviation is still $4137.8010. (LO3) 39. a. 6, found by (0.4)(15) b. 0.0245, found by 10 5 15! (0.4) (0.6) 10!5! c. 0.0338, found by 0.0245 + 0.0074 + 0.0016 + 0.0003 + 0.0000 d. 0.0093, found by 0.0338 0.0245 (LO4) 32. a. 2.1 found by (0 + 4.2) / 2 b. 1.212 found by 2 (4.2 0) 12 c. 0.7143 found by [1 / (4.2 0)](3 0) d. 0.6429 found by [1 / (4.2 0)](4.2 1.5) (LO2, LO3) 37. a. 0.5000, because 30 490 5.11 90 z b. 0.2514, found by 0.5000 0.2486 c. 0.6374, found by 0.2486 + 0.3888 d. 0.3450, found by 0.3888 0.0438 (LO6)...
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This note was uploaded on 04/23/2011 for the course EC 315 taught by Professor Barcus during the Spring '10 term at Park.

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Week 2 HW Solutions - 41.7536 0.0560 1 + PB $3.46 11.9834...

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