Archive for October 23, 2019

Click to access 6expectation%28text%29.pdf

 

 

Great Pumpkin Problem

Posted: October 23, 2019 in AP Calculus

Pumpkin Pi

Expected value

Posted: October 23, 2019 in Probability and Statistics

Discrete Random Variables 

Key Concepts:

  Discrete Continuous
Data recorded by… Counting Measuring
values for ‘x’ Whole # Any real #
Question? How many? How long? /heavy?
Probability Question? P(x = 4) P(3 < x < 5)
  • Expected value: symbol = E(x)
  • Expected value = E(x) μ

Applications of E(x)   

A raffle has 400 tickets and has a first prize of $500, second prize of $200 and a third prize of $80. Prizewinners are drawn, without replacement, in order First consider $5  a ticket then $2 a ticket.

(1st, 2nd, 3rd).

Let X be a random variable representing the winnings of a single ticket buyer.

 

Insurance

A house insured at a value of $240 000 has the probability of burning down estimated to be 0.0008 per year.

What should the insurance company charge for a premium if it wants to make an average profit of $240 per house per year that it is insured?

Let X be a random variable representing the amount that the company has to pay out.