{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

problemset13 - STAT/MA 416 Problem Set 13 Name 1 Winnings...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
STAT/MA 416 September 21, 2011 Problem Set 13 Name: 1. Winnings and Losing. Suppose that a person wins a game of chance with probability 0 . 40, and loses otherwise. If he wins, he earns 5 dollars, and if he loses, then he loses 4 dollars. (a.) What is his expected gain or loss? (b.) What is the variance of his gain or loss? (c.) Find constants a, b such that if X = 0 when he loses and X = 1 when he wins, then Y = aX + b is his earnings. [Hint: solve 5 = a (1) + b and - 4 = a (0) + b . Also: X is a Bernoulli.] Verify your results above by finding E ( Y ) and Var( Y ) with this method. 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2. Telemarketers. One out of every eight calls to your house is a telemarketer. You will record whether the next call is a telemarketer. (a.) What is the probability that the next time the phone rings, it will be a telemarketer? (b.) If the phone calls are independent, what is the probability the 3rd call after dinner will be a telemarketer? (c.) If you lose 30 seconds of your time every time you have to talk to a telemarketer, what is the expected amount of time you will lose on the next phone call?
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern