Quiz 3 B Flashcards
Law of Averages
The term used to describe the phenomenon that as the number of repetitions of a chance process increases, the error between the expected outcome and actual outcome is likely to be large in absolute terms but small in relative terms.
A box Model
A visual way to help model possible outcomes for a real-life chance process that may be repeated multiple times.
Chance Error
When the actual outcome for a chance process does not match the expected outcome, and no bias is present.
Net Gain
What the SUM of the draws represents for a box model that describes a gambling game based on chance where one can either lose or win money.
The number of times the game is played
What the NUMBER of draws represents for a box model that describes a gambling game based on chance where one can either lose or win money.
John Kerrick
A South African mathematician famous for carrying out experiments in probability theory with a coin while in a prisoner of war camp during World War II.
The observed Value
The actual outcome obtained by a chance process.
The expected value
What the outcome of a chance process is expected to be.
The Standard Error
The likely size of the error between the observed value and the expected value of a chance process.
Formula for the Expected Value (EV) for the sum of random draws made with replacement from a box
(number of draws) X (average of the tickets in the box)
Formula for the Standard Error (SE) for the sum of random draws made with replacement from a box
( square root of the number of draws) X (SD of the Tickets in the box)
Another name for the formula used in computing the SE for a sum of draws from a box
Square Root Law
