Reference no: EM1311449
1. A deck of cards contains 52 cards. Of which 4 are aces. You are offered the following wager: Draw one car at random from the deck. You win $10 if the card is drawn is an ace. Otherwise you lose $1. If you make this wager very many times, what will be the mean outcome?
A) About -$1, because you will lose most of the time.
B) About $9, because you win $10 but lose only $1.
C) About -$0.15, that is, on the average you lose about 15 cents.
D) About $0.77, that is on the average you win about 77 cents.
E) About $0, because the random draw gives you a fair bet.
2. Jason's guess on any one question gives no information about his guess on any other question. The statistical term for this is
A) absence of bias.
B) absence of confounding
C) law of large numbers.
D) independence.
E) expected value.