16 Tom trades on the Internet On a good day he averages 1800

16. Tom trades on the Internet. On a good day he averages $1800 gain, and on a bad day $1500 loss. He has good days 27% of the time, bad days 43% of the time, and breaks even the rest of the time (10 points each).

            a. What is the expected value of Tom’s trading?

            b. If he trades for twenty five days, how much can he expect to win or lose?

15. What is the probability of drawing a 10 or a heart from a standard deck of cards (5 points)?

14. What is the probability of drawing a 10 and a heart from a standard deck of cards without replacement (5 points)?

Solution

Q15.

P( Drawing 10) = 4/52

P( Drawing Heart) = 13/52

P( Drawing 10 and Heart) = 1/52

P(drawing a 10 or a heart) = 4/52+13/52-1/52 = 16/52 = 0.3076

Q16.

P( Drawing 10 and Heart) = 1/52