1. Expected Value (MAT 142)
Expected Value

2. Expected Value (MAT 142)
Vocabulary
expected value
decision theory

3. Find the expected hourly wage that a worker at this factory makes.
Of all workers at a certain factory, the proportions earning certain hourly wages are as follows:
hourly wage
$8.50
$9.00
$9.50
$10.00
$12.50
$15.00
proportion
20%
15%
25% 5%
Find the expected hourly wage that a worker at this factory makes.

4. Suppose you are taking a multiple-choice test where each question has choices a through e. If you get the answer correct, you get 4 points. If you get a wrong answer, you lose 1 point.
Find the expected value of a random guess.

5. Suppose you are taking a multiple-choice test where each question has choices a through e. If you get the answer correct, you get 4 points. If you get a wrong answer, you lose 1 point.
Find the expected value of eliminating one answer and guessing among the remaining 4 possible answers.

6. Suppose you are taking a multiple-choice test where each question has choices a through e. If you get the answer correct, you get 4 points. If you get a wrong answer, you lose 1 point.
Find the expected value of eliminating two answers and guessing among the remaining 3 possible answers.

7. Expected Value (MAT 142)
Suppose you are taking a multiple-choice test where each question has choices a through e. If you get the answer correct, you get 4 points. If you get a wrong answer, you lose 1 point.
Use decision theory and your previous answers to create a guessing strategy for this multiple-choice test.