Stuck on this question. 5. In a gambling game, on every play, there is a 0.1 pro
ID: 3433154 • Letter: S
Question
Stuck on this question. 5. In a gambling game, on every play, there is a 0.1 probability that you win $7 and a 0.9 probability that you lose $1. a) Draw the pmf (probability mass function? b) What is the expected value of this game? Interpret in the context of the problem. c) Find the standard deviation Stuck on this question. 5. In a gambling game, on every play, there is a 0.1 probability that you win $7 and a 0.9 probability that you lose $1. a) Draw the pmf (probability mass function? b) What is the expected value of this game? Interpret in the context of the problem. c) Find the standard deviation 5. In a gambling game, on every play, there is a 0.1 probability that you win $7 and a 0.9 probability that you lose $1. a) Draw the pmf (probability mass function? b) What is the expected value of this game? Interpret in the context of the problem. c) Find the standard deviation 5. In a gambling game, on every play, there is a 0.1 probability that you win $7 and a 0.9 probability that you lose $1. a) Draw the pmf (probability mass function? b) What is the expected value of this game? Interpret in the context of the problem. c) Find the standard deviationExplanation / Answer
X=7, P(X=7)=0.1
X=-1, P(X=-1)=0.9
E(X)=7*0.1-1*0.9= -0.2
E(X^2)=7^2*0.1+1*0.9=5.8
Var(X)=E(X^2)-[E(X)]^2
=5.8-0.2^2
=5.76