Using Probability to Make Decisions
PrintUsing Probability to Make Decisions applies probability concepts to evaluate strategies and analyze outcomes in real-world decisions. Random variables and their probability distributions are defined and graphed, and expected value is calculated and interpreted. Probability models inform decisions in contexts such as product testing, medical diagnostics, and game strategy.
Example Problems
A different product's reviews have the following distribution for star ratings T.
Find the indicated probability.
| T | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|
| P(T) | 0.08 | 0.12 | 0.28 | 0.30 | 0.22 |
Find the indicated probability.
A fair coin is flipped 5 times. Let be the number of heads. What is the expected value of ?
In a game you roll a fair six-sided die. You receive (3 times the number showing) dollars minus 5 dollars. What is the expected payout?
An animal‑shelter manager tracks daily adoptions.
Let = the number of animals adopted in one day.
Find the mean of .
Let = the number of animals adopted in one day.
| A = # adopted | 0 | 1 | 2 | 3 | 4 |
|---|---|---|---|---|---|
| Probability | 0.15 | 0.35 | 0.30 | 0.15 | 0.05 |
Find the mean of .
A photocopier has a chance of breaking this month, which would cost to repair; otherwise, there is no repair cost. What is the expected repair cost for the month?

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