Exam 1

  1. Metainformation

    Tag Value
    fileProbability_uva-expected-value-648-en_uva-expected-value-648-en
    nameuva-expected-value-648-en
    sectionProbability/Elementary Probability/Random variables/Expected value
    typenum
    solution97
    tolerance0
    TypeCalculation
    LanguageEnglish
    LevelStatistical Literacy
    IRT-Difficulty1.966
    p-value0.7834

    Question

    John sells bicycles. From the commission of 10% of the gross proceeds he receives for each Gazelle sold, he will earn €25, and € 40 for each Batavus sold. On a sunny Saturday in May, he estimates his sales of Gazelle and of Batavus as follows:

    ————————— —– —– —– —– Gazelle bicycles sold 0 1 2 3 Probability 0.1 0.2 0.5 0.2 ————————— —– —– —– —–

    ————————— —– —– —– Batavus bicycles sold 0 1 2 Odds 0.2 0.3 0.5 ————————— —– —– —–

    What is the expected value of John’s earnings in Euros that are Saturday?


    Solution

    The correct answer is: 97