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discrete random variables problem

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  • discrete random variables problem

    Could somebody help me solve this problem , I keep getting wrong answer? Thank you!

    1.A computer store specializes in selling used laptops. The laptops can be
    classied as either in good condition or in fair condition. Assume that the
    store salesperson is able to tell whether a laptop is in good or fair condition.
    However, a buyer in the store can not tell the dierence. Suppose that buyers
    are aware that the probability of a laptop of being in good condition is 0.4.
    A laptop in good condition costs the store $400 and a buyer is willing to
    pay $525 for it whereas a laptop in fair conidition costs the store $200 and a
    buyer is willing to pay for $300 for it.
    (a) Find the expected value of a used laptop to a buyer who has no extra
    (b) Assuming that buyers will not pay more than their expected value for a
    used laptop, will sellers ever sell laptops in good condition?

    2.A lottery type game consists of matching the correct three numbers that are
    selected from the numbers 1 through 12. The cost of one ticket is $1. If your
    ticket matched the three selected numbers, you win $100. What are your
    expected earnings
    Last edited by mzaychik2000; March 11 2015, 07:08 PM.