Tag | Value |
---|---|
file | Probability_uva-expected-value-1140-en_uva-expected-value-1140-en |
name | uva-expected-value-1140-en |
section | Probability/Elementary Probability/Random variables/Expected value |
type | schoice |
solution | FALSE, TRUE |
Type | Conceptual |
Language | English |
Level | Statistical Literacy |
IRT-Difficulty | -1.548 |
p-value | 0.9562 |
Daan pays €100 a year for insurance for his teeth. He thinks that the probability is 0.1 that in the coming year his teeth will need one time needs surgery, and the probability of more than one surgery is then 0. An operation costs €500 if he does not take insurance, and costs nothing if he does take insurance. Should Daan take insurance if he acting rationally?