You are watching two items posted for sale on eBay and bid $30 for the first and
Question:
You are watching two items posted for sale on eBay and bid $30 for the first and $20 for the second item. You estimate that you are going to win the first bid with probability 0.1 and the second bid with probability 0.2, and you assume that winning the two bids are independent events. Let X denote the random variable denoting the total amount of money you will spend on the two items.
a. List the sample space of all possible outcomes of winning or losing the two bids. (Draw a tree diagram.)
b. Find the probability of each outcome in the sample space. (Use the tree diagram.)
c. Find the probability distribution of X.
d. Find the mean of X.
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
Step by Step Answer:
Statistics The Art And Science Of Learning From Data
ISBN: 9780321997838
4th Edition
Authors: Alan Agresti, Christine A. Franklin, Bernhard Klingenberg