Questions
COMP90054_2025_SM2 Practice Quiz: Markov Decidion Processes (MDPs) (not assessed)
Numerical
You want to buy a new guitar. There are three options: Maton, Fender, and Martin; but you are worried about the dreaded 'buyers remorse'. If you buy a Maton (your dream acoustic guitar!), you think there is an 80% chance that you will feel +100 better (your reward/return); but because it is so expensive, there is a 20% chance of buyer's remorse, which will make you feel -100 (that's a negative reward) If you buy a Fender, you think there is an 70% chance that you will feel +70 better; and a 30% you feel -100. If you buy a Martin, you think there is an 60% chance that you will feel +100 better; a 20% you feel -40; and a 20% that you can sell it to your idiot brother whose name is Martin and buys anything that bears his name, which makes you slightly happy (feel +10) What is the expected return of the Maton?
View Explanation
Verified Answer
Please login to view
Step-by-Step Analysis
To evaluate the expected return, we consider each outcome, its probability, and its payoff. The Maton option has two possible outcomes:\n- With probability 0.80, ......Login to view full explanationLog in for full answers
We've collected over 50,000 authentic exam questions and detailed explanations from around the globe. Log in now and get instant access to the answers!
Similar Questions
The expected value of a "strange die" that has the values {2,3,4,6,7,8} the expected value is ... _________________________________________________________ in case you ask, a "normal" die is this, giving values 1 to 6.
Suppose Shristi owns a house that is worth $490,000 located in a fire hazard zone. There is a 2% (or 0.02) chance that her house will catch a fire in which case it will be completely destroyed (and 98% or 0.98 chance that it will remain intact). What is the expected value of her house?
Suppose you are offered a commission-based job that pays you 20% of your daily expected sales revenue. On any given day, there is an 80% chance you make $100 in sales and a 20% chance you make $1,000 in sales. What is your expected income for that day?
Let p=0.31 and q=0.81. Then, we we have E(X)=12.9, E(Y)=1.589, Var(X)=13.3651 and Var(Y)=60.59. What is E(4*X-9*Y)?
More Practical Tools for Students Powered by AI Study Helper
Making Your Study Simpler
Join us and instantly unlock extensive past papers & exclusive solutions to get a head start on your studies!