A Company Is Studying the Number of Daily Debit Card

question 8

Essay

A company is studying the number of daily debit card purchases. There were 20 purchases and the probability of a debit card purchase is 0.5. Of the 20 purchases, what is the expected value of the number of debit card purchases?

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Definitions:

Payoff Table

A tabular representation of the outcomes of different decisions or strategies under various states of nature or scenarios.

Expected Opportunity Loss

The anticipated loss for not choosing the best possible option or course of action in decision-making processes.

Expected Monetary Value

A statistical technique in decision making used to calculate the average outcome when the future includes scenarios that may or may not happen.

Expected Value

The long-run average value of repetitions of the experiment it represents, often considered as the mean in probability.