In the wheel of fortune simulation with, say, three spins, many people mistakenly believe that the distribution
Question:
In the wheel of fortune simulation with, say, three spins, many people mistakenly believe that the distribution of the average is the flat graph in Figure 7.9, that is, they believe the average of three spins is uniformly distributed between $0 and $1000. Explain intuitively why they are wrong.
Simulation of Winnings from a Single Spin
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The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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The intuition is again the averaging effect which inc...View the full answer
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Related Book For 
Business Analytics Data Analysis and Decision Making
ISBN: 978-1305947542
6th edition
Authors: S. Christian Albright, Wayne L. Winston
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