BASIC EDUCATION DEPARTMENT

Senior High School

First Quarter
AY 2020-2021, First Semester Grade
11 – Statistics and Probability

Name: JEREMY M. SOLANO Teacher: Date: 8/16/2021 Grade and

Section:11-BLESSED CARLO ACUTIS
MR. REIMON CHUA

Activity No. 3: Drill Exercise

Activity Title: Expected Values of a Discrete Random Variable

Learning Targets: Identifies the application and importance of expected value

: Solves problems involving expected value.

Instructions: Answer the following problem, write your solution and

answer on the space provided in each box.

1. A local organization plans to invest PHP 10000 to host a baseball game. They expect
to sell tickets worth PHP 15000. But if it rains on the day of game, they won't sell any
tickets and the organization will lose all the money invested. If the weather forecast
for the day of game is 30% possibility of rain, is this a good investment?

Solution:

GAIN P 5000 -10000

P[X] 70/100 30/100

E[x] = [5000 X 0.7] + [−10000 X 0.3]

= 3500 - 3000
= Php 500.00

PHP 500.00 IS THE RETURN VALUE WHICH IS WORTH TRYING FOR.

 2. A company makes electronic gadgets. One out of every 50 gadgets is faulty, but the
company doesn't know which ones are faulty until a buyer complains. Suppose the
company makes a PHP 3,500 profit on the sale of any working gadget, but suffers a
loss of PHP 5,000 for every faulty gadget because they have to repair the unit. Check
whether the company can expect a profit in the long term.

Solution:
GAIN P 3500 P -5000

P[X] 1/50 49/50

E[x]=[3500 X 0.02 ] +[-5000 X0.98]

= 70 - 4900
= -4830
IS NOT WORTH IT