×
×

# Expected Value for Deal or No Deal The television game show Deal or No Deal begins with

ISBN: 9780321836960 18

## Solution for problem 26 Chapter 5-2

Elementary Statistics | 12th Edition

• Textbook Solutions
• 2901 Step-by-step solutions solved by professors and subject experts
• Get 24/7 help from StudySoup virtual teaching assistants

Elementary Statistics | 12th Edition

4 5 1 377 Reviews
15
3
Problem 26

Expected Value for Deal or No Deal The television game show Deal or No Deal begins with individual suitcases containing the amounts of 1, \$1, \$5, \$10, \$25, \$50, \$75, \$100, \$200, \$300, \$400, \$500, \$750, \$1000, \$5000, \$10,000, \$25,000, \$50,000, \$75,000, \$100,000, \$200,000, \$300,000, \$400,000, \$500,000, \$750,000, and \$1,000,000. If a player adopts the strategy of choosing the option of no deal until one suitcase remains, the payoff is one of the amounts listed, and they are all equally likely. a. Find the expected value for this strategy. b. Find the value of the standard deviation. c. Use the range rule of thumb to identify the range of usual outcomes. d. Based on the preceding results, is a result of \$750,000 or \$1,000,000 unusually high? Why or why not?

Step-by-Step Solution:
Step 1 of 3

Sample Distributions (Chapter 10) Important definitions explained in these notes:  Sample space  Event  Parameter  Statistical inference  The Law of Large Numbers  Discrete Probability Models  Continuous Probability Models  Random Variable  Random Variable  X bar or xx  Central Limit Theorem  An unbiased estimator...

Step 2 of 3

Step 3 of 3

##### ISBN: 9780321836960

Elementary Statistics was written by and is associated to the ISBN: 9780321836960. This full solution covers the following key subjects: . This expansive textbook survival guide covers 121 chapters, and 3629 solutions. This textbook survival guide was created for the textbook: Elementary Statistics, edition: 12. The full step-by-step solution to problem: 26 from chapter: 5-2 was answered by , our top Statistics solution expert on 03/15/17, 10:30PM. Since the solution to 26 from 5-2 chapter was answered, more than 228 students have viewed the full step-by-step answer. The answer to “Expected Value for Deal or No Deal The television game show Deal or No Deal begins with individual suitcases containing the amounts of 1, \$1, \$5, \$10, \$25, \$50, \$75, \$100, \$200, \$300, \$400, \$500, \$750, \$1000, \$5000, \$10,000, \$25,000, \$50,000, \$75,000, \$100,000, \$200,000, \$300,000, \$400,000, \$500,000, \$750,000, and \$1,000,000. If a player adopts the strategy of choosing the option of no deal until one suitcase remains, the payoff is one of the amounts listed, and they are all equally likely. a. Find the expected value for this strategy. b. Find the value of the standard deviation. c. Use the range rule of thumb to identify the range of usual outcomes. d. Based on the preceding results, is a result of \$750,000 or \$1,000,000 unusually high? Why or why not?” is broken down into a number of easy to follow steps, and 130 words.

#### Related chapters

Unlock Textbook Solution