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
Foster Company makes 20,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows: Direct materials $24.70 Dir

charlie removes the 12 face cards from a standard deck of cards then shuffles the face cards together on their own. He selects 2 cards from the pile. The probability that the first

In each of the following cases, compute 95 percent, 98 percent, and 99 percent confidence intervals for the population proportion p. p=.1, n=30, p = .1, n = 100, p = .5, n = 50, p

time series use in indian economy

Unfortunately the 10 questions are timed and when I send them to you, I MUST have back in 3-1/2 to 4 hours. Can you help?

Draw a tree diagram to represent all probabilities for the following. a bag contains 11 red and 8 blue marbles. Two marbles are selected at random without replacement from the bag.

which one is better skewed or kurtic distributed data?

Your firm purchased a line of computer equipment for $1.5M four years ago. It is assigned a CCA rate of 20% and the firm has a tax rate of 35%. At the end of this year (year 4 for

Miller (2008) examined the energy drink consumption of college undergraduates and found that males use energy drinks significantly more often than females. To further investigate t

what is the importance of time series