SOLUTION: you toss a die.if the number on the die is less than 3,you recieve $10.if it is greater than 4, you pay $20.otherwise you call it quit.what is the expected payoff?what is the stand

Algebra ->  Probability-and-statistics -> SOLUTION: you toss a die.if the number on the die is less than 3,you recieve $10.if it is greater than 4, you pay $20.otherwise you call it quit.what is the expected payoff?what is the stand      Log On


   

Question 182855: you toss a die.if the number on the die is less than 3,you recieve $10.if it is greater than 4, you pay $20.otherwise you call it quit.what is the expected payoff?what is the standard deviaton?
Answer by Edwin McCravy(20054) About Me  (Show Source):
You can put this solution on YOUR website!
you toss a die.if the number on the die is less than 3,
you receive $10.if it is greater than 4, you pay $20.
Otherwise you call it quits. what is the expected payoff?
what is the standard deviaton?





So if you continued to play this game many times
you would average losing matrix%281%2C5%2C10%2F3%2C+%22=%22%2C+3%261%2F3%2C+%22=%22%2C+%22%243.33%22%291%2F3
per game.

That's called the "expectation", or for this
problem, they call it "expected payoff", although
it amounts to an expected pay-OUT, not payOFF!

To find the standard deviation we will use the 
shortcut formula, which is why we need the far 
right column above.  First we find the
variance:



Then to find the standard deviation, we take the
square root of the variance:



Edwin