Suppose a friend reports that she has just had a string of “bad luck” with her car. She had three major problems in as many months and now has replaced many of the worn parts with new ones. She concludes that it is her turn to be lucky and that she shouldn’t have any more problems for a while. Is she using the gambler’s fallacy? Explain.
Answer to relevant QuestionsA fair coin is flipped six times and the sequence of heads and tails is observed. a. Are the sequences HHHHHH and HTHHTT equally likely? Explain. b. Are the events “A = 6 heads in the 6 tosses” and “B = 3 heads and 3 ...In financial situations, are businesses or individuals more likely to make use of expected value for making decisions? Explain. Explain why the story about George D. Bryson, reported in Example 17.1, is not all that surprising. An article in the Sacramento Bee (Stafford, 2003) on July 7, 2003, reported that the current minimum wage at that time was only $ 5.15 an hour and that it had not kept pace with inflation. The Consumer Price Index at the ...A paperback novel cost $ 3.49 in 1981, $ 6.99 in 1995, and $ 14.00 in 2013. Compute a “paperback novel price index” for 1995 and 2013 using 1981 as the base year. In words that can be understood by someone with no ...
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