There are eight problems in this assignment for which you should submit solution
ID: 3170259 • Letter: T
Question
There are eight problems in this assignment for which you should submit solutions, the eight simply being your choice for the mathbooks problem. Following this, there is an extra problem which in worth thinking about, but is not to be submitted for grading. A list of suggested problem from the textbook, also ungraded, is provided as well. With this assignment, there is overlap with 8.4 and 8.5. However, the amount of information presented in these section may be overwbelming, so I encourage you to use class notes for guidance on what we are facing on. Please clearly label all problems and In particular, some questions specifically call for explanations. These are important. Problem to submit: This question is about last week's Mathbooks problem. Ticket A: Flip 10 fair coins. If there are 4, 5, or 6 heads, then you received $10. Otherwise you lose $15. Ticket B: The exact opposite of option A. Flip 10 fair coins. If there are 4, 5, or 6 heads, then you lose $10. Otherwise you receive $15. Which ticket, if any, has a positive expected gain, how much is that expected gain?Explanation / Answer
Given,
Ticket A
Flip 10 coins
total outcomes are 11
In 3 outcomes {4H,6T} or {5H,5T} or {6H,4T} we receive $10
other 8 outcomes we lose $15
hence the expected gain is
E(X)= (10*3)+(-15*8)
E(X)= -90
expected loss in this scenario is 90
Ticket B
total outcomes are 11
In 3 outcomes {4H,6T} or {5H,5T} or {6H,4T} we lose $10
other 8 outcomes we gain $15
hence the expected gain is
E(X)=(3*-10)+(8*15)
E(X)=90
Expected gain in this scenario is 90
Hence we can conclude that Ticket B has a positive expected gain by $90
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