Cork Name: MAT 133: 6.1 Worksheet #2 6.1: Discrete Random Variables and Expected Value 1. Determine whether the random v

[answerhappygod]

Cork Name Mat 133 6 1 Worksheet 2 6 1 Discrete Random Variables And Expected Value 1 Determine Whether The Random V 1 (49.08 KiB) Viewed 51 times

Cork Name: MAT 133: 6.1 Worksheet #2 6.1: Discrete Random Variables and Expected Value 1. Determine whether the random variable described is discrete or continuous Continuous a. The width of a desk in a home office. Discrete Continuous b. The number of vehicles owned by a family Discrete 2. Nick has $5000 to invest and will commit the whole amount, for six months, to one of three technology Stocks. A number of uncertainties could affect the prices of these stocks, but Nick is confident, based on his research; that one of only several possible profit scenarios will prove true of each one at the end of the six-month period, Company ABC Profit Probability .400 0.2 800 05 1500 0.3 Company RST Profit Probability 500 08 1000 02 Company XYZ Profit Probability 0 0.4 700 0.3 1200 0.1 2000 0.2 a. Find the expected profit (or loss) or loss for each of the three stocks. Company ABC Company RST Company XYZ Compony XYZ b. Which is the optimal choice based on expected value? Company ABC Company RST Company XYZ c. If Nick is an optimist, which stock would Nick choose? Company ABC Company RST Company XYZ d. If Nick is a pessimist, which stock would Nick choose? Company ABC Company RST