John is watching an old game show rerun on television called Lets Make

QUESTION

John is watching an old game show rerun on television called Lets Make a Deal in which the contestant chooses a prize behind one of two curtains. Behind one of the curtains is a gag prize worth $150, and behind the other is a round-the-world trip worth $7,200. The game show has placed a subliminal message on the curtain containing the gag prize, which makes the probability of choosing the gag prize equal to 75 percent. What is the expected value of the selection, and what is the standard deviation of that selection?
Statement of expected value and standard deviation : Amount (X) Probability (P) PX P (X-Y)^2 150 0.75 112.5 2329804.68 7200 0.25 1800 6989414.06 Y = 1912.5 9319218.74¦

d Deviation : square root of 9319218.74 = 9319218.74 ^ Standard Deviation = 3052.74 Expected Value = 1912.5

ANSWER:

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