problern 2 (20 points). Suppose that at FIU Homecoming this Professor\". You hav

Question

problern 2 (20 points). Suppose that at FIU Homecoming this Professor". You have three chances to throw a ball and hit a lever so th pool and get wet. You can dunk your professor a maximum of three times. Fun! year, there is an event called "Dunk your at your professor will fall into the Suppose that your probability of hitting the lever is 0.3. Your friend offers you a bet of $5 that you cannot dunk your professor. You win$5 if you dunk your professor at least once and lose ss if you do not dunk your professor at all. Is this a profitable bet? a) 5

Explanation / Answer

probability that you dunk your professor at least not been able to dunk at all) =1-(1-0.3)3 =0.657

here expected value of game =expected gain -expected loss =0.657*5-(1-0.657)*5 =$1.57

as value of bet is positive therefore it is a positive bet.

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