Lesson 8: Random Variables

February 5, 2020

Review:

  • Quiz 03 Results
  • Probability Models
  • Dice Simulation
  • Theoretical probability of win/loss/tie percentages vs simulations

Presentation:

  • Random Variables
    • Discrete Random Variables
      • Probability distribution table
      • Dice Simulation
    • Continuous Random Variables
      • Stock Market simulation next week

Activity:

  • Add a cash balance component to your “Pass” Dice Game simulation
    • Use *your* simulation worksheet (not mine)
    • Beginning balance = $100
    • Bet amount = $5
    • Payoff amount (for a winning bet) = you decide!
    • Try 3x, 3.5x, 4x, 4.5x and 5x.
    • Which payoff amount is most likely to attract players while maintaining a sufficient long term advantage for the house?

Assignment:

  • Watch Video from Unit 20 – Random Variables
  • Study for Quiz 04
    • Probability
    • Dice Simulation

Justin

Justin Holman is CEO of Aftermarket Analytics, where he leads efforts to develop cutting edge sales forecasting and inventory optimization technology for the Automotive Aftermarket. Prior to joining Aftermarket Analytics, Justin managed corporate consulting for the Strategy & Analytics division at MapInfo Corporation, leading major projects for retail clients including The Home Depot, Darden Restaurants, Bridgestone-Firestone, Sainsbury’s and New York & Company. Before that, Justin served as Vice President of Software Development at LogicTools, now part of IBM's supply chain application software group. Justin holds a B.A. from Claremont McKenna College, a Ph.D. from the University of Oregon and an Executive Management certificate from Northwestern University's Kellogg School of Management.

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