Loading...

PPT – Expected Value PowerPoint presentation | free to download - id: 358f5-MmI5Z

The Adobe Flash plugin is needed to view this content

View by Category

Presentations

Products
Sold on our sister site CrystalGraphics.com

About This Presentation

Write a Comment

User Comments (0)

Transcript and Presenter's Notes

Expected Value

- Chapter 20

Expected value

- expected value a weighted average we average

the outcomes but give more weight to those

outcomes that occur more often (higher

probability) - expl expected number of vehicles per household

data from sample of households

- You cannot just take an average of the six

possible outcomes (number of vehicles) because

that would give them all equal weight. - You need to take into consideration that the

probability that a household has 2 vehicles is

more than the probability that a household has 4

vehicles, etc.

- Let X represent the number of vehicles.
- Expected value of X denoted E(X)
- 0(.04) 1(.25) 2(.45) 3(.18) 4(.06)

5(.02) - 2.03
- So the expected number of vehicles in a household

is 2.03. This is a weighted average of all the

households sampled. If we were to select a

household randomly, wed expect them to have

about 2.03 vehicles.

- In general, let a1, a2, a3, , ak be possible

outcomes and p1, p2, p3, , pk be their

probabilities. - Then E(X) a1 p1 a2 p2 ak pk
- expl Lottery
- A lottery ticket costs 1. You pick a three digit

number. If your number is chosen, you win 500. - We will find the expected value of this lottery

ticket (from the consumers perspective). This

will tell us, on average, how much each consumer

can expect to make or lose. - First, find the probability of winning and the

probability of losing as well as the actual

winnings.

If I spend 1 for the ticket and win nothing, my

winnings are -1. If I spend 1 and win 500, my

winnings are 499.

There are 1000 3-digit numbers (total

possibilities). The winner will be 1 of those (a

success).

Worksheet and Homework

- E(X) -1(.999) 499(.001)
- -.50
- So the consumer can expect to lose 50 cents, on

average, each time he or she plays.

Expected value of lottery ticket discusses the

expected value of a Illinois Lotto lottery

ticket. We find expected value a little

differently than the book does. Be careful here.

Chapter 20 homework 1, 3, 6, 11, 16

About PowerShow.com

PowerShow.com is a leading presentation/slideshow sharing website. Whether your application is business, how-to, education, medicine, school, church, sales, marketing, online training or just for fun, PowerShow.com is a great resource. And, best of all, most of its cool features are free and easy to use.

You can use PowerShow.com to find and download example online PowerPoint ppt presentations on just about any topic you can imagine so you can learn how to improve your own slides and presentations for free. Or use it to find and download high-quality how-to PowerPoint ppt presentations with illustrated or animated slides that will teach you how to do something new, also for free. Or use it to upload your own PowerPoint slides so you can share them with your teachers, class, students, bosses, employees, customers, potential investors or the world. Or use it to create really cool photo slideshows - with 2D and 3D transitions, animation, and your choice of music - that you can share with your Facebook friends or Google+ circles. That's all free as well!

For a small fee you can get the industry's best online privacy or publicly promote your presentations and slide shows with top rankings. But aside from that it's free. We'll even convert your presentations and slide shows into the universal Flash format with all their original multimedia glory, including animation, 2D and 3D transition effects, embedded music or other audio, or even video embedded in slides. All for free. Most of the presentations and slideshows on PowerShow.com are free to view, many are even free to download. (You can choose whether to allow people to download your original PowerPoint presentations and photo slideshows for a fee or free or not at all.) Check out PowerShow.com today - for FREE. There is truly something for everyone!

You can use PowerShow.com to find and download example online PowerPoint ppt presentations on just about any topic you can imagine so you can learn how to improve your own slides and presentations for free. Or use it to find and download high-quality how-to PowerPoint ppt presentations with illustrated or animated slides that will teach you how to do something new, also for free. Or use it to upload your own PowerPoint slides so you can share them with your teachers, class, students, bosses, employees, customers, potential investors or the world. Or use it to create really cool photo slideshows - with 2D and 3D transitions, animation, and your choice of music - that you can share with your Facebook friends or Google+ circles. That's all free as well!

For a small fee you can get the industry's best online privacy or publicly promote your presentations and slide shows with top rankings. But aside from that it's free. We'll even convert your presentations and slide shows into the universal Flash format with all their original multimedia glory, including animation, 2D and 3D transition effects, embedded music or other audio, or even video embedded in slides. All for free. Most of the presentations and slideshows on PowerShow.com are free to view, many are even free to download. (You can choose whether to allow people to download your original PowerPoint presentations and photo slideshows for a fee or free or not at all.) Check out PowerShow.com today - for FREE. There is truly something for everyone!

presentations for free. Or use it to find and download high-quality how-to PowerPoint ppt presentations with illustrated or animated slides that will teach you how to do something new, also for free. Or use it to upload your own PowerPoint slides so you can share them with your teachers, class, students, bosses, employees, customers, potential investors or the world. Or use it to create really cool photo slideshows - with 2D and 3D transitions, animation, and your choice of music - that you can share with your Facebook friends or Google+ circles. That's all free as well!

For a small fee you can get the industry's best online privacy or publicly promote your presentations and slide shows with top rankings. But aside from that it's free. We'll even convert your presentations and slide shows into the universal Flash format with all their original multimedia glory, including animation, 2D and 3D transition effects, embedded music or other audio, or even video embedded in slides. All for free. Most of the presentations and slideshows on PowerShow.com are free to view, many are even free to download. (You can choose whether to allow people to download your original PowerPoint presentations and photo slideshows for a fee or free or not at all.) Check out PowerShow.com today - for FREE. There is truly something for everyone!

For a small fee you can get the industry's best online privacy or publicly promote your presentations and slide shows with top rankings. But aside from that it's free. We'll even convert your presentations and slide shows into the universal Flash format with all their original multimedia glory, including animation, 2D and 3D transition effects, embedded music or other audio, or even video embedded in slides. All for free. Most of the presentations and slideshows on PowerShow.com are free to view, many are even free to download. (You can choose whether to allow people to download your original PowerPoint presentations and photo slideshows for a fee or free or not at all.) Check out PowerShow.com today - for FREE. There is truly something for everyone!

Recommended

«

/ »

Page of

«

/ »

Promoted Presentations

Related Presentations

Page of

Home About Us Terms and Conditions Privacy Policy Presentation Removal Request Contact Us Send Us Feedback

Copyright 2018 CrystalGraphics, Inc. — All rights Reserved. PowerShow.com is a trademark of CrystalGraphics, Inc.

Copyright 2018 CrystalGraphics, Inc. — All rights Reserved. PowerShow.com is a trademark of CrystalGraphics, Inc.

The PowerPoint PPT presentation: "Expected Value" is the property of its rightful owner.

Do you have PowerPoint slides to share? If so, share your PPT presentation slides online with PowerShow.com. It's FREE!