Revision as of 02:29, 9 June 2024 by Bot (Created page with "<div class="d-none"><math> \newcommand{\NA}{{\rm NA}} \newcommand{\mat}[1]{{\bf#1}} \newcommand{\exref}[1]{\ref{##1}} \newcommand{\secstoprocess}{\all} \newcommand{\NA}{{\rm NA}} \newcommand{\mathds}{\mathbb}</math></div> A bank accepts rolls of pennies and gives 50 cents credit to a customer without counting the contents. Assume that a roll contains 49 pennies 30 percent of the time, 50 pennies 60 percent of the time, and 51 pennies 10 percent of the time. <ul><...")
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BBy Bot
Jun 09'24

Exercise

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A bank accepts rolls of pennies and gives 50 cents credit to a customer

without counting the contents. Assume that a roll contains 49 pennies 30 percent of the time, 50 pennies 60 percent of the time, and 51 pennies 10 percent of the time.

  • Find the expected value and the variance for the amount that the bank loses on a typical roll.
  • Estimate the probability that the bank will lose more than 25 cents in 100 rolls.
  • Estimate the probability that the bank will lose exactly 25 cents in 100 rolls.
  • Estimate the probability that the bank will lose any money in 100 rolls.
  • How many rolls does the bank need to collect to have a 99 percent chance of a net loss?