Warm Up 1 Five dierent books are on

Warm Up 1) Five different books are on a shelf. In how many different ways could you arrange them? 2) How many ways can gold, silver, and bronze medals be awarded for a race run by 8 people? Solution #1 The five books can be arranged in 5 · 4 · 3 · 2 · 1 = 5! = 120 ways. Solution #2: Using the permuation formula we find P(8, 3) = 8!(8− 3)! = 336 ways of them is r the second letter?

What is the expected value of winning it cost one dollar to win and if you win you get $35? expected value is: − 1× 37⁄38 + 35× 1⁄38 = − 0. 0526

Probability model to find expected value and standard deviation mathematical representation of a random phenomenon. It is defined by its sample space and probabilities associated with each event A probability assigned for each possible outcome All probabilities add up to 1

A life insurance company charge $50 per year, they want to find out if they will have losses. They have 1000 policy holders who get: $10, 000 if die: 1 expected a year $5, 000 if disabled: 2 expected a year $0: if nothing happens How to find out about losses: 1. Set up probability model table Outcome Probability 10000 1/1000 =. 001 2. Find expected value 5000 2/1000 =. 002 0 997/1000 =. 997 3. Find standard deviation Expected value 20

Standard Deviation for Probability Model