Understanding Combinations and Expected Value: A Review of Probability Scenarios
Dive into the fascinating world of probability and expected value with real-world examples. Explore how to calculate the number of ways to form groups from a larger set, such as selecting groups from 25 people, considering order and randomness. Discover how to compute probabilities from real-life situations, like selecting drinks from a cooler. Additionally, learn to find expected values for insurance policies and profit scenarios based on traffic conditions. Master these concepts to enhance your understanding of basic probability and statistics.
Understanding Combinations and Expected Value: A Review of Probability Scenarios
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Presentation Transcript
Math 1332 Chapter 11.8 Review and Expected Value
From 25 people, how many random groups of 5 can you select? From 25 people, how many groups of 5 can you select if you order them from tallest to shortest?
I have the following in a cooler: 6 Cokes, 8 Sprite, 4 Water Find the probability of selecting 3 sprites in a row. Find the probability of selecting a Coke or a Sprite
Expected Value – multiply each outcome by it’s probability and add the results
An airline sells a $100,000 policy for $1. What is the expected value and how much can the company make on each policy it sells if there are 25 deaths per 10 million travelers.
A store expects the following:Profit if there is good traffic: $20 MillionLoss if there is no traffic: $1.5 millionProbability of good traffic: .3What is the expected value?
A dice game has the following rules: If you roll a 1 on a die you win $30Any other value wins nothingWhat is the expected value if the fee is $6
