Use the Expected Value Examples #1 and #2 below for this assignment:

For this assignment, develop TWO of your own Expected Valueexamples using the same format as the examples below in the resources, but use different values.(A) Develop your TWO Expected Value examples in Excel.Each example must have different data from the ones in the resources above, but they can be in the same format.Be sure to follow their logic, and use your calculator to confirm all the computations.Upload your example in this Blackboard folder via your Excel file.(B) In your Excel file, also, interpret the results from your analysis, and tell me what your result means in relation to the study of your probability distribution and expected value calculation.

Note: When you do Expected Value problems, the sum of your probabilities in your expected value equation must equal to 1.0 (your probabilities must be in decimal form.This means that you are using a probability distribution equal to 1.0 in each expected value problem).

Submit only one Excel file with all your work.

Expected Value Example #1:

Developing a Probability Distribution from Empirical Data

In real-world situations, statisticians obtain data by means of observation and experimental methods. Data obtained in this manner is called empirical data.

A probability distributionobtained by means of observation and experimental methods is referred to as anempirical probability distribution, or a relative frequencybased on observation.

Example:

LetXbe the number of movies a high school student watches in a given month.

A survey conducted at one particular high school in the month of December gives by the following table:

If we assume that the students at this high school are typical, and that December is a typical month, then

The probability that a high school student will watch 1 movie per month is 17%;

The probability that a high school student will watch 2 movies per month is 28%;

etc.

Use this empirical probability distribution to find the expected value for the number of movies a high school student will watch in a month.

Convert the percentages to decimals.

17% = 0.17

Use the weighted average formula.

So, we can expect the average high school student to watch 2.95 movies per month.

Expected Value Example #2: