MAT 142Lecture Video

Series

Expected Value

Objectives

• Determine the expected value of an event.

Vocabulary

• expected value • decision theory

Of all workers at a certain factory, the proportions earning certain hourly wages are as follows:

Find the expected hourly wage that a worker at this factory makes.

hourly wage

$8.50 $9.00 $9.50 $10.00$12.5

0$15.00

proportion

20% 15% 25% 20% 15% 5%

Suppose you are taking a multiple-choice test where each question has choices a through e. If you get the answer correct, you get 4 points. If you get a wrong answer, you lose 1 point.

Find the expected value of a random guess.

Suppose you are taking a multiple-choice test where each question has choices a through e. If you get the answer correct, you get 4 points. If you get a wrong answer, you lose 1 point. Find the expected value of eliminating one answer and guessing among the remaining 4 possible answers.

Suppose you are taking a multiple-choice test where each question has choices a through e. If you get the answer correct, you get 4 points. If you get a wrong answer, you lose 1 point. Find the expected value of eliminating two answers and guessing among the remaining 3 possible answers.

Suppose you are taking a multiple-choice test where each question has choices a through e. If you get the answer correct, you get 4 points. If you get a wrong answer, you lose 1 point. Use decision theory and your previous answers to create a guessing strategy for this multiple-choice test.

Creator and Producer

Elizabeth Jones

for

The School of Mathematical and Statistical Sciences

atArizona State University

Videographer

Mike Jones

©2009 Elizabeth Jones and School of Mathematical and Statistical Sciences at Arizona State University