Weigh the possible outcomes of a decision by assigning probabilities to payoff values and finding expected values. ★
- Find the expected payoff for a game of chance. For example, find the expected winnings from a state lottery ticket or a game at a fast-food restaurant.
- Evaluate and compare strategies on the basis of expected values. For example, compare a high-deductible versus a low-deductible automobile insurance policy using various, but reasonable, chances of having a minor or a major accident.
Subject Area: Mathematics
Domain-Subdomain: Statistics & Probability: Using Probability to Make Decisions
Cluster: Level 2: Basic Application of Skills & Concepts
Date Adopted or Revised: 02/14
Date of Last Rating: 02/14
Status: State Board Approved