Calculate the expected profit and probability , Basic Statistics

An individual has $ 100 initially. He repeatedly plays a game of chance in which he earns $ 100 with probability 0.8 or loses $ 100 with probability 0.2. The stops playing at the first of two possibilities: he has no more money or he has 400$.

(A) On average, how many times will heplays?

(B) What is the probability that he will end with $ 400?

(C) Calculate the expected profit. Would he have had a better expected profit if he started with $ 200?

 

Posted Date: 3/26/2013 8:04:59 AM | Location : United States







Related Discussions:- Calculate the expected profit and probability , Assignment Help, Ask Question on Calculate the expected profit and probability , Get Answer, Expert's Help, Calculate the expected profit and probability Discussions

Write discussion on Calculate the expected profit and probability
Your posts are moderated
Related Questions
why death rates are standardlized

Uses of mean

Kody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates:


uuuuioooooo zAZ az; z;;ZuazA; Zazx A Za zA ZA xza XZ Axz AZX A xA XZ axz AZX A zxA ZXa oxz aOX AxzAAX axz

Explain Bond discount The excess of the countenance worth of a bond over the price for which it is acquire or sold resulting from a disparity between the marketplace rate of inter


Please show your work to receive credit for this question.. Harkin Electronics is planning its production next quarter for its two product lines, relays and capacitors.  The pro

Suppose that permanent income, YP (t) is calculated as the average of disposable income (YD t ) over the past 5 years, that is: YP (t) = 0.2(YD t + YD t-1 + YD t-2 + YD t-3

Mr. Palsson plans to buy a MacBook Pro which can hold the 6GB of RAM (he has a 4GB chip laying around, so he doesn't care what RAM is actually in the computer, as long as the compu