Connect ×-.dss ttps:// ion.com/flow/connect.html screte Random Variables Help Sa

Question

Connect ×-.dss ttps:// ion.com/flow/connect.html screte Random Variables Help Save &Exlt; Submit Check my work During a cash poker game, a professional gambler bets $4,000 on the cards in his hands. The bet has a 0.82 probablity of producing a large profit of $4,800, a 0.02 probability of producing a small profit of $300, and a 0.16 probability of producing a loss of $4,000. If the gambler were to continue making bets with this probablity distribution, what would his expected profit be? Enter your answer as a decimal rounded to two places Expected profit = dollars Prey 4 of 8 Next >

Explanation / Answer

We have given information,

P1=0.82 is large profit $4800.

P2=1-0.02.=0.98 is large profit $300.

P3=1-0.16=0.84 is large profit $4000.

Expected profit =(p1*4800)+(p2*300)+(p3*4000)

=(0.82*4800)+(0.98*300)+(0.84*4000)

=3936+294+3360

=$7590 .

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