e television show deal or no deal begins with individual suit cases containing the amounts of 1cent, $1,$5,$10,$25,$50,$75,$100,$200,$300,$400,$500,$750,$1000,$5000,$10,000,$25000,...

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e television show deal or no deal begins with individual suit cases containing the amounts of 1cent, $1,$5,$10,$25,$50,$75,$100,$200,$300,$400,$500,$750,$1000,$5000,$10,000,$25000, $50000,$75000,$100,000,$200,000,$300,000,$400,000,$500,000,$750,000 and 1,000,000. If a player adopts the strategy of choosing the option of "no deal" until one suit case remains, the payoff is one of the amounts listed, and they are equally likely.
A) Find the expected value of the strategy.


B) Find the value fo the standard deviation.


C) Use the range rule of thumb to idenify the the range of usual outcomes.


D) Based on the preceeding results, is a result of $750,000 or $1,000,000 unusual? Why or why not?



Answered Same DayDec 20, 2021

Answer To: e television show deal or no deal begins with individual suit cases containing the amounts of 1cent,...

Robert answered on Dec 20 2021
120 Votes
The television show deal or no deal begins with individual suit cases containing the amounts of 1cent,
$1,$5,$10,$25,$50,$75,$100,$200,$300,$400,$500,$750,$1000,$5000,$10,000,$25000,
$50000,$75000,$100,000,$200,000,$300,000,$400,000,$500,000,$750,000 and 1,000,000. If a player
adopts the strategy of choosing the option of "no deal" until one suit case remains, the payoff is one of
the amounts listed, and they are equally likely.
A) Find the expected value of the strategy.
B) Find the value of the standard deviation.
C) Use the range rule of thumb to identify the range of usual outcomes.
D) Based on the preceding results, is a result of $750,000 or $1,000,000 unusual? Why or why not?
Amount (X)
Probability
P(X) XP(X) X2P(X)
0.01 1/26 0.000385 3.85E-06
1...
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