Thinking about chance

Review and Practice Exam Questions for Exam 2
Learning Objectives:
Chapter 17: Thinking about chance

Explain how random events behave in the short run and in the long run and how random and
haphazard are not the same thing.
Perform basic probability calculations using die rolls and coin tosses.
Define probability, and apply the rules for probability.
Explain whether the law of averages is true.
Explain how personal probability differs from a scientific or experimental probability.

Chapter 18: Probability models

Define a probability model. Create a probability model for a particular storys events.
Apply the basic rules of probability to a story problem.
Calculate probabilities using a probability model, including summing up probabilities or
subtracting probabilities from the total.
Define a sampling distribution.

Chapter 20: The house edge: expected values

Define expected value, and calculate the expected value when given a probability model.
Define the law of large numbers, and explain how it is different from the mythical law of
averages.
Explain how casinos and insurance companies stay in business and make money.