Question
Consider a game in which a red die and a blue die are rolled. Let x R denote the value showing on the uppermost face
Consider a game in which a red die and a blue die are rolled. LetxRdenote the value showing on the uppermost face of the red die, and definexBsimilarly for the blue die.
(a) The probability distribution ofxRis as follows.xRp(xR)11/621/631/641/651/661/6Find the mean, variance, and standard deviation ofxR. (Round your answers to three decimal places.)
Mean =
Variance =
Standard deviation =
(b) What are the values of the mean, variance, and standard deviation ofxB? You should be able to answer this question without doing any additional calculations. (Round your answers to three decimal places.)
Mean =
Variance =
Standard deviation =
(c) Suppose that you are offered a choice of the following two games.Game 1:Costs $7 to play, and you winy1dollars, wherey1=xR+xB.Game 2:Doesn't cost anything to play initially, but you "win"4y2dollars, wherey2=xR-xB. Ify2is negative, you must pay that amount; if it is positive, you receive that amount.
For Game 1, the net amount won in a game isw1=y1- 7 =xR+xB- 7. What are the mean and standard deviation ofw1? (Round your answers to three decimal places.)
Mean =
Standard deviation =
(d) For Game 2, the net amount won in a game isw2=4y2=4(xR-xB). What are the mean and standard deviation ofw2? (Round your answers to three decimal places.)
Mean =
Standard deviation =
(e) Based on your answers to Parts (c) and (d), which game would you choose if you are quite a risky person?
Game 1
Game 2
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