CASE: Problem 5.

1
A. Compute for the ex-pected value for each distribution.
B. Compute the standard deviation for each distribution.
C. Compare and contrast the results of distributions A and B.

Distribution A Distribution B XiP(Xi) [Xi-E(X)]2 P(Xi)

X P(X) X P(X) A B A B
0 0.50 0 0.05 - - 0.5000 0.0000 (1.00)
1 0.20 1 0.10 0.20 0.10 0.0000 0.0111 -
2 0.15 2 0.15 0.30 0.30 0.1500 0.0667 1.00
3 0.10 3 0.20 0.30 0.60 0.4000 0.2000 2.00
4 0.05 4 0.50 0.20 2.00 0.4500 0.8889 3.00
1.00 3.00 1.5000 1.1667 variance
1.2247 1.0801 standard deviation

CASE: Problem 5.2

A. Compute for the ex-pected value for each distribution.
B. Compute the standard deviation for each distribution.
C. Compare and contrast the results of distributions A and B.

Distribution A Distribution B XiP(Xi) [Xi-E(X)]2 P(Xi)

X P(X) X P(X) A B A B
0 0.20 0 0.10 - - 0.8000 0.0000 (2.00)
1 0.20 1 0.20 0.20 0.20 0.2000 0.0500 (1.00)
2 0.20 2 0.40 0.40 0.80 0.0000 0.4000 -
3 0.20 3 0.20 0.60 0.60 0.2000 0.4500 1.00
4 0.20 4 0.10 0.80 0.40 0.8000 0.4000 2.00
2.00 2.00 2.0000 1.3000 variance
1.4142 1.1402 standard deviation

CASE: Problem 5.3

A. Form the probability distribution for the number of cars sold per day
B. Compute the mean or expected number of cars sold per day.
C. Compute the standard deviation

No.Of Cars Frequency (mean)

Sold/day of Occurrence P(X) XiP(Xi) [Xi-E(X)] P(Xi)
0 40 0.08 - 0.7471 (3.06) 9.34
1 100 0.20 0.20 0.8454 (2.06) 4.23
2 142 0.28 0.57 0.3167 (1.06) 1.12
3 66 0.13 0.40 0.0004 (0.06) 0
4 36 0.07 0.29 0.0642 0.94 0.89
5 30 0.06 0.30 0.2267 1.94 3.78
6 26 0.05 0.31 0.4507 2.94 8.67
7 20 0.04 0.28 0.6222 3.94 15.56
8 16 0.03 0.26 0.7822 4.94 24.44
 9 14 0.03 0.25 0.9893 5.94 35.33
10 8 0.02 0.16 0.7715 6.94 48.22
11 2 0.00 0.04 0.2524 7.94 63.11
Total 500 1.00 3.06 6.0689 variance
2.4635 standard deviation
0.01

CASE: Problem 5.4

A. Compute the mean or expected number of accidents per day
B. Compute the standard deviation

Accidents (mean)
per day P(X) XiP(Xi) [Xi-E(X)] P(Xi)
0 0.10 0.00 0.40 -2.00 4
1 0.20 0.20 0.20 -1.00 1
2 0.45 0.90 0.00 0.00 0
3 0.15 0.45 0.15 1.00 1
4 0.05 0.20 0.20 2.00 4
5 0.05 0.25 0.45 3.00 9
2.00 1.40 variance
1.18 standard deviation

CASE: Problem 5.5

A. Compute the mean or expected number of interruptions per day
B. Compute the standard deviation

Accidents (mean)
per day P(X) XiP(Xi) [Xi-E(X)] P(Xi)
0 0.32 0.00 0.52 -1.27 1.61
1 0.35 0.35 0.03 -0.27 0.07
2 0.18 0.36 0.10 0.73 0.53
3 0.08 0.24 0.24 1.73 2.99
4 0.04 0.16 0.30 2.73 7.45
5 0.02 0.10 0.28 3.73 13.91
6 0.01 0.06 0.22 4.73 22.37
1.27 1.68 variance
1.30 standard deviation

CASE: Problem 5.6

A. Construct the probabitlity distribution representing the different outcomes that are possible for a $1.00
bet on being under 7
B. Construct the probabitlity distribution representing the different outcomes that are possible for a $1.00
bet on being over 7
C. Construct the probability distribution representing the different outcomes that are possible for a $1.00
bet on being over 7
D. Show that the expected long-run profit (or loss) to the player is the same, no matter which method of play
is used
possible possible possible possible possible possible
outcomes under 7 bet outcomes over 7 bet outcomes being 7 bet
1 1,1 1.00 1 6,2 1.00 1 1,6 1.00
2 1,2 1.00 2 6,3 1.00 2 2,5 1.00
3 1,3 1.00 3 6,4 1.00 3 3,4 1.00
4 1,4 1.00 4 6,5 1.00 4 4,3 1.00
5 1,5 1.00 5 6,6 1.00 5 5,2 1.00
6 2,1 1.00 6 5,3 1.00 6 6,1 1.00
7 2,2 1.00 7 5,4 1.00
8 2,3 1.00 8 5,5 1.00
9 2,4 1.00 9 5,6 1.00
10 3,1 1.00 10 4,4 1.00
11 3,2 1.00 11 4,5 1.00
12 3,3 1.00 12 4,6 1.00
13 4,1 1.00 13 3,5 1.00
14 4,2 1.00 14 3,6 1.00
15 5,1 1.00 15 2,6 1.00
15 15.00 15 15.00 6 6.00
 1 - 0.00
0 0.33 0.11
1 0.67 0.44
4 1.00 1.00
9 1.33 1.78

standard deviation

4 - 0.00
1 0.50 0.25
0 1.00 1.00
1 1.50 2.25
4 2.00 4.00

standard deviation