Textbook ExpertVerified Tutor
7 Nov 2021
Given information
A “friend” offers you the following “deal.” For a $10 fee, you may pick an envelope from a box containing 100 seemingly identical envelopes. However, each envelope contains a coupon for a free gift.
• Ten of the coupons are for a free gift worth $6.
• Eighty of the coupons are for a free gift worth $8.
• Six of the coupons are for a free gift worth $12.
• Four of the coupons are for a free gift worth $40.
Based upon the financial gain or loss over the long run, should you play the game?
a. Yes, I expect to come out ahead in money
Step-by-step explanation
Step 1.
Let X= dollars in the following coupons which is in the envelope respectively
and p(x) = probability of getting envelope.
Here, we have only $10 to select an envelope that has a coupon,
- if a coupon is worth $10 then 10 envelopes will cost worth $100 which is a loss for me because we have to pay an extra $9
- if a coupon is worth $10 then 80 envelopes will cost worth $800 which is a loss for me
- if a coupon is worth $10 then 6 envelopes will cost worth $60 which is a loss for me.
- if a coupon is worth $10 then 4 envelopes will cost worth $40 which is a loss for me.
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Introductory Statistics
OER Edition, 2013
Openstax
ISBN: 9781938168208
Solutions
Chapter
Section
- Problem 36
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- Problem 70c
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- Problem 94d
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- Problem 99a
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- Problem 100a
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- Problem 100d
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- Problem 100f
- Problem 101a
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- Problem 101d
- Problem 101e
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- Problem 101g
- Problem 102a
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- Problem 102e
- Problem 103a
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- Problem 104a
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- Problem 105a
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- Problem 106g
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- Problem 107i
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- Problem 109
- Problem 110a
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- Problem 117a
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- Problem 119
- Problem 120a
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- Problem 120f
- Problem 121a
- Problem 121b
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- Problem 121d
- Problem 121e
- Problem 121f
- Problem 122a
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- Problem 122d
- Problem 122e
- Problem 122f
- Problem 123a
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- Problem 123d
- Problem 123e
- Problem 123f
- Problem 123g
- Problem 124a
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- Problem 124f
- Problem 125a
- Problem 125b
- Problem 125c
- Problem 125d
- Problem 125e
- Problem 125f
- Problem 126a
- Problem 126b
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- Problem 126d
- Problem 126e
- Problem 126f
- Problem 127a
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- Problem 127g
- Problem 128
- Problem 129