The following is a probability distribution for the number of credit cards a person has. Number of Credit Cards 0 1 3 Probability: 0.200.30 0.200.15 0.10 0.05 a) Calculate the expected value or average number of credit cards a person has. Show Wor b) Interpret what that expected value mean in context to this scenario. 4,

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**Probability Distribution for Credit Cards**

The following table represents a probability distribution for the number of credit cards a person has:

| Number of Credit Cards | 0   | 1   | 2   | 3   | 4   | 5   |
|------------------------|-----|-----|-----|-----|-----|-----|
| Probability            | 0.20| 0.30| 0.20| 0.15| 0.10| 0.05|

**Tasks:**

a) **Calculate the expected value or average number of credit cards a person has. Show Work!**

b) **Interpret what that expected value means in context to this scenario.**

---

**Expected Value Example 2:**

The Red Cross is selling raffle tickets as a fundraiser. They have 10,000 tickets to sell for $1 each. They will draw 3 winners after all the tickets are sold. The prize distribution is as follows:
- First-place winner: $750
- Second-place winner: $500
- Third-place winner: $250

**Tasks:**

a) **Using the information above, fill in the probability model in the table below:**

| Prize        | First Place | Second Place | Third Place | None |
|--------------|-------------|--------------|-------------|------|
| Amount       |             |              |             | $0   |
| Probability  |             |              |             |      |

b) **Calculate the expected value of a ticket. Show work!**

c) **Interpret what that expected value means in context to this scenario.**
Transcribed Image Text:**Probability Distribution for Credit Cards** The following table represents a probability distribution for the number of credit cards a person has: | Number of Credit Cards | 0 | 1 | 2 | 3 | 4 | 5 | |------------------------|-----|-----|-----|-----|-----|-----| | Probability | 0.20| 0.30| 0.20| 0.15| 0.10| 0.05| **Tasks:** a) **Calculate the expected value or average number of credit cards a person has. Show Work!** b) **Interpret what that expected value means in context to this scenario.** --- **Expected Value Example 2:** The Red Cross is selling raffle tickets as a fundraiser. They have 10,000 tickets to sell for $1 each. They will draw 3 winners after all the tickets are sold. The prize distribution is as follows: - First-place winner: $750 - Second-place winner: $500 - Third-place winner: $250 **Tasks:** a) **Using the information above, fill in the probability model in the table below:** | Prize | First Place | Second Place | Third Place | None | |--------------|-------------|--------------|-------------|------| | Amount | | | | $0 | | Probability | | | | | b) **Calculate the expected value of a ticket. Show work!** c) **Interpret what that expected value means in context to this scenario.**
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