expected value

[diana132]

PROBLEM: You have decided to move out of your house and rent an apartment. your new landlord is a bit unusual and gives you seceral choices as to how you will pay your rent. for each of the following rental plans, you must find the average monthly rent so that you can decide which rental plan will be the best.

Plan 1. Pay $775 per month
Plan 2. Flip a coin. If it lands on heads, you pay $750. If it lands on tails you pay $875
Plan 3. Pick a card from a standard deck with no jokers. If you choose an ace, you pay $1100. If you choose a face card, you pay $1000. other wise you pay $650
Plan 4. In a bag, you place one $50 bill, three $100 bills and two $500 bills. You shake the bag and your landlord reaches in and choose 3 Bills. What he chooses he keeps.

 

[Deleted member 4993]

PROBLEM: You have decided to move out of your house and rent an apartment. your new landlord is a bit unusual and gives you seceral choices as to how you will pay your rent. for each of the following rental plans, you must find the average monthly rent so that you can decide which rental plan will be the best.

Plan 1. Pay $775 per month
Plan 2. Flip a coin. If it lands on heads, you pay $750. If it lands on tails you pay $875
Plan 3. Pick a card from a standard deck with no jokers. If you choose an ace, you pay $1100. If you choose a face card, you pay $1000. other wise you pay $650
Plan 4. In a bag, you place one $50 bill, three $100 bills and two $500 bills. You shake the bag and your landlord reaches in and choose 3 Bills. What he chooses he keeps.

What have you been taught regarding calculation of expected value?

First decide on the events - for example in plan 2

there are two events- the coin can - land on head or on tail.

What are the respective probabilities of those events?

Then calculate expected values.

Please show us your work, indicating exactly where you are stuck - so that we may know where to begin to help you.