Statistics and Probability - Using Probability to Make Decisions
PrintUsing Probability to Make Decisions connects expected value calculations to real-world choices such as insurance and game strategy. Standards include evaluating probability models and making fair-decision analyses. This domain rounds out the Statistics and Probability strand in Algebra 2 and Statistics courses.
Example Problems
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?
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 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?
Ramkin is going to flip a fair coin 1,200 times.
What is the best prediction for the number of times that the coin will land heads up?
What is the best prediction for the number of times that the coin will land heads up?

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