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## Statistics and probability

### Course: Statistics and probability>Unit 9

Lesson 8: More on expected value

# Making decisions with expected values

You might need: Calculator

## Problem

Mopedin’ Marvin is arguing with his mom about buying a dollar sign, 150 light for his moped. His mom wants him to be safe, but Marvin thinks that lights are too expensive.
Based on traffic data, Marvin makes the table below which shows the time, probability, and cost of three different types of accidents if Marvin doesn’t have the light.
If Marvin purchases the light, it will not matter in the morning or at dusk, but it will prevent a night accident from occurring. Assume that Marvin can get in at most one accident and that Marvin's table is accurate.
What is the expected total cost of accidents and lights if Marvin buys the light? Round your answer to the nearest dollar. dollar sign
What is the expected total cost of accidents and lights if Marvin does not buy the light? Round your answer to the nearest dollar. dollar sign
If Marvin wants the best payoff in the long run, he should
.
Time of accidentCostProbability
Morningdollar sign, 200010, percent
Duskdollar sign, 400015, percent
Nightdollar sign, 200020, percent
Stuck?
Stuck?