Question #1: Which best and most accurately describes what an expected value is?

a. an average rate of change

b. a conditional probability

c. an average

d. the probability that an event does not take place

e. an average value that we expect to observe in the long-run

f. the standard deviation of an expected numerical value

Question #2: A casino game results in two possible outcomes: you either win $100 with 1% probability or you lose $5 with 99% probability. What is your expected value as the player of the game?

Question #3: In a small suburban community, there is a 9% chance that a train comes through town at any given time. If a train does come through, there is a 54% chance it causes a traffic jam. The probability that a train does not come through and that there is simultaneously no traffic jam is 40%. Given that a train does not come through, what is the probability there will be a traffic jam, anyway? Give your answer as a decimal rounded to three decimal places.

Question #4: If you choose to watch three movies on Netflix, in how many different ways can you view them, assuming you will view each one only once?