Question 13 First attempt

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Worldwide Oil Transport Incorporated is considering hiring a small oil spill response team to follow one of their ships
from Alaska to Russia. Report: Expected value 100%

The oil spill response team would cost 50 thousand dollars but would save an estimated 2500 thousand dollars in the 1/4 This ship is estimated to have a 1% chance of generating an oil spill. If this happens, the value is
event of an oil spill. The ship is estimated to have a 1% chance of generating an oil spill. 2500 − 50 = 2450 thousand dollars (the estimated savings from the response team minus the
1 Incorrect 2 Incorrect 3 team).
cost of the response Correct
Find the expected value of hiring the oil spill response team.
The expected value of a fair 6-sided die is 3.5.
2/4
Annie is participating in a winner-take-all WorldAccording
Series of to the estimate,
X is a discrete is a 99%variable.
there random chance The
of nograph
oil spill.
belowIn this case, the value is −50
Poker tournament that costs 10 thousand dollars thousand
to dollars (just the cost of the response team).
thousand dollars defines a probability distribution for X .
Which of the following statements are true? enter. The prize for winning the tournament
3/4 is 500
Let's multiply each value by its probability because expected value is the sum of all possible values,
0.5%
thousand dollars. Annie estimates that there is aeach What
value multiplied byisits
the expected value of X ?
probability.
Choose all answers that apply: chance that she will win the tournament.

Value Probability Value ⋅ Probability

Find the expected value of entering the tournament for
3.5 is one of the possible outcomes of Annie. Oil spill 2450 0.01 24.5
A
rolling a fair 6-sided die.
No oil spill −50 0.99 −49.5
thousand dollars
A fair 6-sided die is more likely to land on 4/4 The expected value is 24.5 − 49.5 = −25 thousand dollars.
B
the number 4 than the number 6.

If you rolled a fair 6-sided die a large

number of times, you should expect the
C
average of the numbers rolled to be about
3.5.

5 Incorrect

6 Correct
The expected value of the sum of two fair 6-sided dice is
7.
X is a discrete random variable. The table below defines
a probability distribution for X .
Which of the following statements are true?
4 Correct
Choose all answers that apply: What is the expected value of X ?
Alice is riding the train to her job in Paris, France. She
accidentally purchased a ticket for zone 4, but she is
No matter how many times you roll two fair
travelling to zone 5. She has decided to risk it and stay
on the train until zone 5 with the incorrect ticket. If the
6-sided dice, the average of the sum of the
A x P (X = x)
 transit authorities check tickets on the train, she will dice will be exactly 7. x P (X = x)
have to pay a fine. Question 13 First attempt
0 0.3
Alice estimates that there is a 5% chance that the B The sum of two fair 6-sided dice could be 5.
3 0.5
transit authorities will check tickets. The fine for having
Responses Draw Hints
Worldwide Oil Transport Incorporated
the wrong ticket is 300hiring
is considering euros.a small oil spill
The ticket she response team to follow one of their ships
purchased 7 0.1
from Alaska to Russia. cost her 5 euros. If the first die lands on 4, the second die will
C 10 0.1
always land on 3.
The oil spill response team would cost 50 thousand dollars but would save an
Find the total expected cost of Alice's train ride. estimated 2500 thousand dollars in the 1/4 This ship is estimated to have a 1% chance of generating an oil spill. If this happens, the value is
event of an oil spill. The ship is estimated to have a 1% chance of generating an oil spill. 2500 − 50 = 2450 9 thousand dollars (the estimated savings from the
Correctresponse team minus the
cost of the response team).
euros
Find the expected value of hiring the oil spill response team.
2/4 Anouk andthere
According to the estimate, Tessais are playing
a 99% a game
chance where
of no a player
oil spill. In thisflips
case, the value is −50
a coin. If the coin lands on heads,
thousand dollars (just the cost of the response team). the player receives 1
thousand dollars
point. If the coin lands on tails, the player receives 2
3/4 Let's multiply eachpoints.
value by its probability because expected value is the sum of all possible values,
each value multiplied by its probability.
The expected value of a turn is 1.5 points.
Value Probability Value ⋅ Probability

8 Incorrect
Oil spill Which of 0.01
2450 the following statements
24.5 are true?
No oil spill −50
Choose all0.99
answers that apply:−49.5
Ivy is in Las Vegas and bet on her favorite team, the
Denver Dragons, to beat the Seattle Sea4 /Turtles.
4 The expected value is 24.5 − 49.5 = −25 thousand dollars.
It is possible for a player to get 1.5 points
A
7 Correct If the Denver Dragons win, she will win 10 dollars. If the on a turn.
Seattle Sea Turtles win, she will lose 11 dollars (the extra
X is a discrete random variable. The graph below dollar is commission). Ivy estimates that there is a 50%
If they play a large number of turns, they
defines a probability distribution for X . chance of the Denver Dragons winning (there cannot be
B should expect to average about 1.5 points
a tie).
per turn.
What is the expected value of X ?
Find the expected return of placing this bet.
The total number of points from 2 turns
C
dollars must be exactly 3 points.

11 Incorrect
 In Las Vegas, a particular sports bet has about a 30% 12 Correct
Question 13
chance of winning.
If the bet wins, the bettor will win 15 First attempt
dollars. If the bet loses, the bettor will lose 10 dollars. X is a discrete random variable. The table below defines
10 Correct a probability distribution for X .
The expected return of placing one of these bets is Draw Hints
Responses
Worldwide Oil Transport Incorporated is considering hiring a small oil spill response team to follow one of their ships
X is a discrete random variable. The graph below −2.50 dollars. What is the expected value of X ?
from Alaska to Russia.
defines a probability distribution for X .
Which of the following statements are true?
The oil spill response team would cost 50 thousand dollars but would save an estimated 2500 thousand dollars in the 1/4 This ship is estimated to have a 1% chance of generating an oil spill. If this happens, the value is
What is the expected value of X ?
event of an oil spill. The ship is estimated to have a 1% chance of generating an oil spill. 2500 − 50 = 2450 thousand dollars (the estimated savings from the response team minus the
Choose all answers that apply:
cost of the responsexteam).P (X = x)
Find the expected value of hiring the oil spill response team.
2 / 4 2 of According
It is possible for a bettor to place these
−7
to the estimate, 0.2is a 99% chance of no oil spill. In this case, the value is −50
there
A thousand dollars (just the cost of the response team).
thousand dollars bets and win both of them. −3 0.1
3/4 3 by its0.4
Let's multiply each value probability because expected value is the sum of all possible values,
each value multiplied by its probability.
If a bettor places a large number of these
B bets, they should expect to average a return 7 0.3
of about −2.50 dollars per bet. Value Probability Value ⋅ Probability

Oil spill 2450 0.01 24.5

The average return per bet from 2 of these
No oil spill 15
−50 0.99 −49.5 Correct
C
bets must be exactly −2.50 dollars.
4/4 The expected value is 24.5
John just − 49.5 a=brand
bought −25 thousand dollars.
new cell phone and is
considering buying a warranty. The warranty costs 200
euros and is worth 1000 euros if his phone breaks.
John
estimates that there is a 10% chance of his phone
breaking.

Find the expected value of buying the warranty.

13 Incorrect euros

Worldwide Oil Transport Incorporated is considering

hiring a small oil spill response team to follow one of
their ships from Alaska to Russia.
14 Incorrect

The oil spill response team would cost 50 thousand

A teetotum is a spinning top that has an equal
dollars but would save an estimated 2500 thousand
probability of landing on each side. The expected value
dollars in the event of an oil spill. The ship is estimated
of one spin of a 12-sided teetotum (labeled with the
to have a 1% chance of generating an oil spill.
numbers from 1 to 12) is 6.5.
Find the expected value of hiring the oil spill response
Which of the following statements are true?
team.

Choose all answers that apply:

thousand dollars

Th ld l d h b 10
 The teetotum could land on the number 10.
A
Question 13 First attempt

The teetotum is more likely to land on the

B
number 6 than any other number.
Responses Draw Hints
Worldwide Oil Transport Incorporated is considering hiring a small oil spill response team to follow one of their ships
from Alaska to Russia.
No matter how many times you spin the
16 Correct
The oil spill response team would cost 50 thousand dollars but would save an estimated 2500 thousand C teetotum,
dollars the average number
in the 1 /from This ship is estimated to have a 1% chance of generating an oil spill. If this happens, the value is
4 the
event of an oil spill. The ship is estimated to have a 1% chance of generating an oil spill. spins will be exactly 6.5. 2500 − 50 = 2450 thousand dollars (the estimated savings from the response team minus the
X is a discrete random variable. The graph below cost of the response team).
defines a probability distribution for X .
Find the expected value of hiring the oil spill response team.
2/4 According to the estimate, there is a 99% chance of no oil spill. In this case, the value is −50
What is the expected value of X ? thousand dollars (just the cost of the response team).
thousand dollars
3/4 Let's multiply each value by its probability because expected value is the sum of all possible values,
each value multiplied by its probability.

Value Probability Value ⋅ Probability

Oil spill 2450 0.01 24.5

No oil spill −50 0.99 −49.5

4/4 The expected value is 24.5 − 49.5 = −25 thousand dollars.