1) Near the end of a basketball game when a team is down by one point, the team has several options. A researcher examined the results of 197 games. 62 times the team attempted a three point shot and they won 17 of those times. 103 times the team attempted a two point shot and the team won 65 of those times. In the remaining games, the team did not have another shot and they lost all of those times. Determine the probability of the team down by one point winning.

2) A contractor is considering a sale that promises a profit of $34,000 with a probability of .7 or a loss (due to bad weather, strikes, and such) of $5,000 with a probability of .3. What is the expected profit?

3) What makes a game of chance fair?

4) An insurance company charges a $200 premium against the theft of a painting valued at $15,000. If the painting has a 2% probability of being stolen, what is the expected value of the policy to the insurance company? Interpret your result.