# 2, 3, 4, 8, 12, 13, 15, 17Sorry for all the questions. I just hate paying 3$ per question. Thank you!

Problem Set 13.2 Level 1 1 . IN YOUR OWN WORDS True or false? In roulette, if you bet on black, the probability of winning is ? because there are equal numbers of black and red spots. Explain. 8. The expectation from playing a game in which you win $950 is about by correctly calling heads or tails on each of five flips of a coin 2. IN YOUR OWN WORDS True or false? An expected value A. $500 of $5 means that you should expect to win $5 each time you B. $50 C. $950 play the game. Explain. 9. If the expected value of playing a $1 game of blackjack is 3. IN YOUR OWN WORDS True or false? If the expected $0.04, then after playing the game 100 times you should have netted about Explain. value of a game is positive, then it is a game you should play. A. $104 B. -$4 C. $4 10. If your expected value when playing a $1 game of roulette is 4. IN YOUR OWN WORDS Suppose that you buy a lottery -$0.05, then after playing the game 100 times you should ticket for $1. The payoff is $50,000, with a probability of have netted about winning 1/1,000,000. Therefore, the expected value is A. -$105 B. -$5 C. $5 11. The probability of correctly guessing a telephone number is E = $50,000( about 1,000,000, = $0.05 A. 1 out of 100 B. 1 out of 1,000 Is this statement true or false? Explain. C. 1 out of 1,000,000 5. IN YOUR OWN WORDS In Illinois, 42.5% of all money 12. Winning over $10 million in a super lottery is about as prob- wagered in the lottery must be returned in winnings. If you bet able as $10, does this mean that your expectation is $4.25? A. having a car accident B. having an item fall out of the sky into your yard 6. IN YOUR OWN WORDS If you were asked to choose C. being a contestant on Jeopardy between a sure $10,000, or an 80% chance of winning $15,000 13. Suppose that you roll two dice. You will be paid $5 if you roll and a 20% chance of winning nothing, which would you take? a double. You will not receive anything for any other outcome. Game A: How much should you be willing to pay for the privilege of E = $10,000(1) = $10,000 rolling the dice? 14. A magazine subscription service is having a contest in which This is a sure thing. the prize is $80,000. If the company receives 1 million entries, Game B: what is the expectation of the contest? E = $15,000(0.8) + $0(0.2) = $12,000 15. A box contains one each of $1, $5, $10, $20, and $100 bills. You reach in and withdraw one bill. What is the expected True or false? The better choice, according to expected value, value? is to take the 80% chance of winning $15,000. Explain. 16. A box contains one each of $1, $5, $10, $20, and $100 bills. It costs $20 to reach in and withdraw one bill. What is the Use estimation to select the best response in Problems 7-12. expected value? Do not calculate. 17. Suppose that you have 5 quarters, 5 dimes, 10 nickels, and 7. The expectation from playing a game in which you win $950 5 pennies in your pocket. You reach in and choose a coin by correctly calling heads or tails when you flip a coin is at random so that you can give it to your child. What is the about expectation? What is the most likely gift? A. $500 B. $50 C. $950