Back to Evaluate and compare strategies using expected values — Problem 3 · Task Set 32
Exercises: Evaluate and Compare Strategies Using Expected Values
Work through each section in order. For every comparison, FIRST state the direction: an expected COST means lower is better; an expected PAYOFF means higher is better. Model each strategy as its own distribution, compute its expected value, then compare the totals. For insurance problems, remember expected cost = premium + expected out-of-pocket. Show your arithmetic.
Grade 11·22 problems·~35 min·Common Core Math - HS Statistics and Probability·standard·hss-md-b-5b
Work through problems with immediate feedback
A
Fluency Practice
Compute each strategy's expected value and compare. State the direction.
1.
Policy B has an annual premium and a deductible paid per accident. For a driver whose chance of an accident is , compute the expected annual cost, in dollars.