Project 13.5
a. Answer each of the following questions* based on your own feelings.
b. Answer questions (1) and (2) using mathematical expectations as a basis for
selecting your answers.
c. Conduct a survey of at least 10 people and summarize your results.
1. Choose between A and B:
A. A sure gain of $240
B. A 25% change to gain $1,000 and a 75% chance to gain $0
2. Choose between C and D:
C. A sure loss of $700
D. 75% chance to loose $1,000 and %25 change to lose nothing
3. Choose between E and F
E. Imagine that you have decided to see a concert and have paid the admission
price of $10. As you enter the concert hall, you discover that you have lost
the ticket. Do you pay $10 for another ticket?
F. Imagine that you have decided to see a concert where the admission is $10.
As you going to enter the concert ticket line, you discover that you have lost
one of your $10 bills. Would you still pay $10 for a ticket to the concert?
* These questions are from A Bird in the Hand, by Carolyn Richbart and
Lynn Richbart in The Mathematics Teacher, November 1996, pp. 674-676.
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