Must solve in R code Question 2 The random variable X is a payout table of a...

Free

90.2K

Verified Solution

Question

Basic Math

Must solve in R code
Question 2
The random variable X is a payout table of a casino slotmachine. The probability mass function is given:
XÂ Â -5Â Â 0Â Â 2Â Â 10Â Â 20Â Â 40Â Â 60Â Â 1000
ProbabilityÂ Â 0.65Â Â 0.159Â Â 0.10Â Â 0.05Â Â 0.02Â Â 0.01Â Â 0.01Â Â 0.001
Please simulate the results for playing the slot machine 10,000,000times. Find the mean of these 10,000,000 simulated payout outcomes.

Answer & Explanation Solved by verified expert

4.0 Ratings (689 Votes)

In R, we have first generated the samples from the distribution of X as below:

u~R(0,1)

if (u<..65)

x=-5

if( u>.65 && u<.65+.159)

x=0

if( u>.65+.159 && u<.65+.159+.10)

x=2

and so on.

Finally calculated the sample mean of generated x's and a frequency distribution of the generated x's.

We report the mean as -0.1577593.

R Program

nsim=10000000
x=numeric(nsim)
for(i in 1:nsim)
{
u=runif(1,0,1)
if(u<.65)
x[i]=-5
if(u>.65 && u<.809)
x[i]=0
if(u>.809 && u<.909)
x[i]=2
if(u>.909 && u<.959)
x[i]=10
if(u>.959 && u<.979)
x[i]=20
if(u>.979 && u<.989)
x[i]=40
if(u>.989 && u<.999)
x[i]=60
if(u>.999)
x[i]=1000
}
table(x)
cat(\"\n\",\"Simulated Mean=\",mean(x))

R Output

x
-5 0 2 10 20 40 60 1000
6498761 1589532 1001486 500392 199514 100199 100218 9898

Simulated Mean= -0.1577593

For any query in above, comment.

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member