What is the probability that Mrs. Williams will have 3 boys in a row?
Out of 100, I got 8 times of Heads 3 times in a row. I am not sure if this is how to calculate the probability because I couldn’t quite understand how to do so from the assignment, but I took 98/8=12.25. Therefore the probability is 12.25 %.
The proportion of boys and girls:
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Boys = 46
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Girls = 54
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Proportion of Boys = 46% or .46
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Proportion of Girls = 54% or .54
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Ratio of Boys to Girls = 46:54
Based on the law of large numbers, if i kept flipping my coin 10,000 times, my proportions of both boys and girls should even out to about 50% each (Mac Ewen 2008). The law of large numbers explains random variation’s stability. It is the theorem to why holding onto a stock when it suddenly goes down makes sense. The law of large numbers knows that the stock will go right back up….eventually.
Law of Large Numbers in my life
I’m a delivery girl. I deliver pizza to make money and get paid $5.45 hourly, but the bulk of the money I make is determined by tips. Based on the year and a half I’ve been working there, I feel like the average tip is $3.00. I have based my average tip on the law of large numbers. My tips vary incredibly. Some people don’t give any tips, some people are drunk and can give me $7.00, sometimes I might deliver 20 pizzas and get a $25.00 tip (or get a normal $3.00 tip), but for the most part, I have no idea what I’m going to get. Some nights, I will work 3 hours and come home with $60.00; other nights, a 3 hour-shift might only yield me $20.00. I usually go into work expecting to make $40.00 at the least. Reasons why I could be mistaken are determined based on:
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There are too many drivers for the night. Sometimes we will have 7 drivers on nights such as Wednesday when we really only need 5 drivers. If there are too many drivers, I don’t get as many runs (or deliveries).
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There aren’t enough drivers. The reverse is also true. When there aren’t enough drivers, I could get a ton of deliveries. It would be a very stressful night, but these are the nights I most enjoy because at the end, I could leave with $80.00-$100.00.
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I just get crappy tippers. Sometimes I can have 18 or so deliveries and only make $60.00. On average 20 deliveries usually gives a driver $100.
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I get a bonus tip. These tippers rule. Sometimes, I will randomly get someone to give me $15-$20. I love these people. At any rate, that will bump up how much money I take home at night.
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It’s a slow night. Sometimes, everyone in the world, decides not to order pizza, and I don’t get many deliveries hence much tips.
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Bad weather. When it rains, or snows, people order pizza. It’s not fun driving in, but is sure fun going home afterwards (because I usually get more money).
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I get awesome tippers. Sometimes, everybody tips $5.00. I love these nights. I could only take 10 deliveries, and come home with over $50 (I get paid mileage too).
As you can see, there are plenty of reasons why I might “make that money”, or not. The standard deviation formula used in my example would take all my tips for a night, add them up and get the mean (Mac Ewen 2008). Next, I would take each individual tip and subtract it from the mean to get the standard deviation of that single tip. I would then add up all the standard deviations for each individual tip and divide by however many deliveries I took that night. That’s how I would get my standard deviation.
If I had a small sample (if there was a night where I only took 5 deliveries), my variation would be a lot larger than if I had a larger sample (if I had 20 deliveries, or if I took all the deliveries for the entire week and got the standard deviation).
Why is this true?
Let’s say I took 5 deliveries. I got $4, $5, a stiff, $2, and $1. My standard deviation would be 1.85 with an average of $2.40.
If I took all my tips for the entire month, I would have about 100 deliveries. I probably, in one month, would have a total of 6 stiffs. Can you see how 1 stiff on one night would have more importance than 6 stiffs out of 100 deliveries? That 1 stiff is going to pull my average and standard deviation way down if I only have 5 deliveries. If I have 100 deliveries, yes, the stiffs will pull the number down, but in comparison to all the regular tips, plus the random big tips, it will balance out. That is how the law of large numbers works. It’s all about balance.