1 / 8

Expected Value

Expected Value. MM1D2d: Use expected value to predict outcomes. Expected Value. The expected Value of the collection of outcomes is the sum of the products of the event’s probabilities and their values BASICALLY…… E = event A value (prob. of event) + event B value (Prob. of event).

eloyj
Download Presentation

Expected Value

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Expected Value MM1D2d: Use expected value to predict outcomes

  2. Expected Value • The expected Value of the collection of outcomes is the sum of the products of the event’s probabilities and their values • BASICALLY…… • E = event A value (prob. of event) + event B value (Prob. of event)

  3. Find the Expected Value • EXAMPLE 1 • Consider a game in which two players each flip a coin. If both coins land heads up, then player A scores 3 points and player B loses 1 point. Find the expected value of the game for each player.

  4. Consider a game in which two players each flip a coin. If both coins land heads up, then player A scores 3 points and player B loses 1 point. Find the expected value of the game for each player. • E = event A value (prob. of event) + event B value (Prob. of event) • TT • TH • HT • HH • E = 3(1/4) + -1(3/4) • E= ¾ + - ¾ • E = 0

  5. Expected Value • Amanda has injured her leg and may not be able to play in next basketball game. • If she can play the coach estimates the team will score 68 points. • If she cannot play, the coach estimates the team will score 54 points. • Determine the expected # of points the team scores

  6. Ex2: • E = event A value (prob. of event) + event B value (Prob. of event) • E = 68(.50) + 54(.50) • E= 34 + 27 • E = 61 points

  7. Ex3: • A landscaper mows 25 lawns per day on sunny days and 15 lawns per day on cloudy days. • The weather is sunny 65% of the time and cloudy 35% of the time • Find the expected number of lawns the landscaper mows per day

  8. Ex3: • E = event A value (prob. of event) + event B value (Prob. of event) • E = 25(.65) + 15(.35) • E = 16.25 + 5.25 • E = 21.5 lawns per day

More Related