Question
Suppose that you pay $3 to play a game. The following is the instruction of the game. First, you toss two fair coins independently. If
Suppose that you pay $3 to play a game. The following is the instruction of the game. First, you toss two fair coins independently. If you observe two heads, then you will earn $8. Otherwise, you will earn nothing (e.g. $0) . let X be your net earning of the game. Note that your net earning is given by the amount of money you earn from the game minus the amount of money you pay for the game.
Part A Determine the probability distribution of X by completing the table below. Note Put all X values in an increasing order and round the probabilities to 5 decimal places (0.12345) if possible )
X | Probability |
---|---|
Part B Calculate the expected value of X. (Round the expected value to 5 decimal places if possible)
Part C Calculate the standard deviation of X (Round the standard deviation to 5 decimal places if possible)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started