Applications of Probability 1 Contents 1.Expected Outcomes 2.Financial Expectation Press ‘Ctrl-A’ © G Dear 2008 (Free to use. May not be sold)

Applications of Probability 2 7A Expected Outcomes (1/6) Expected Outcomes Is the number of times an event can be expected to occur in a given number of trials. The number of times an event occurs (experimental) is not the same as theoretical. Example: Example: How many heads can be expected when a coin is tossed 500 times P(Heads) = 1212 Expectation = 1212 x 500 = 250

Applications of Probability 3 7A Expected Outcomes (2/6)

Applications of Probability 4 7A Expected Outcomes (3/6) Expected Outcomes Example: Example: How many head/heads can be expected when two coins is tossed 200 times HT H T H HH HH HH H H TH TH TH T T HT HT HT H T TT TT TT T P(Head/Head) = 1 Expectation = 1414 x 200 = 50 4

Applications of Probability 5 7A Expected Outcomes (4/6)

Applications of Probability 6 7A Expected Outcomes (5/6) Expected Outcomes Example: Example: How many ‘picture cards’ can be expected when 26 cards are chosen from a standard deck of playing cards P(Picture Card) = 1252 = 313 Expected = 313 x 26 = 6 Experiment

Applications of Probability 7 7A Expected Outcomes (6/6) Expected number of Picture Cards is 6 out of 26.

Applications of Probability 8 7B Financial Expectations (1/) Roulette Experiment

Applications of Probability 9 7B Financial Expectations (1/) [Right-Click Mouse -> Select Play] If necessary.

Applications of Probability 10 7B Financial Expectations (1/) Poker Machine Poker Machine Experiment