Chapter 4: Q.2 (page 282)
= _______
Short Answer
The probability of .
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Chapter 4: Q.2 (page 282)
= _______
The probability of .
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Complete the expected value table.

The chance of an IRS audit for a tax return with over $25,000 in income is about 2% per year. We are interested in the expected number of audits a person with that income has in a 20-year period. Assume each year is independent.
a. In words, define the random variable X.
b. List the values that X may take on.
c. Give the distribution of X. X ~ _____(_____,_____)
d. How many audits are expected in a 20-year period?
e. Find the probability that a person is not audited at all.
f. Find the probability that a person is audited more than twice
On May 11, 2013 at 9:30 PM, the probability that moderate seismic activity (one moderate earthquake) would occur in the next hours in Japan was about . As in Example , you bet that a moderate earthquake will occur in Japan during this period. If you win the bet, you win . If you lose the bet, you pay. Let X = the amount of profit from a bet. Find the mean and standard deviation of X.
Suppose that you are offered the following 鈥渄eal.鈥 You roll a die. If you roll a six, you win If you roll a four or five, you win If you roll a one, two, or three, you pay
a. What are you ultimately interested in here (the value of the roll or the money you win)?
b. In words, define the Random VariableX.
c. List the values that X may take on.
d. Construct a PDF.
e. Over the long run of playing this game, what are your expected average winnings per game?
f. Based on numerical values, should you take the deal? Explain your decision in complete sentences.
A trainer is teaching a dolphin to do tricks. The probability that the dolphin successfully performs the trick is 35%, and the probability that the dolphin does not successfully perform the trick is 65%. Out of 20 attempts, you want to find the probability that the dolphin succeeds 12 times. State the probability question mathematically.
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