Common Core Standards: Math
5. Weigh the possible outcomes of a decision by assigning probabilities to payoff values and finding expected values.
One of the most fun things to do with statistics is to show how games can be played with them. More importantly, how to calculate beforehand whether or not it's even worth playing a game based on the expected value of the game.
- Find the expected payoff for a game of chance. For example, find the expected winnings from a state lottery ticket or a game at a fast-food restaurant.
- Evaluate and compare strategies on the basis of expected values. For example, compare a high-deductible versus a low-deductible automobile insurance policy using various, but reasonable, chances of having a minor or a major accident.