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  <name>The Carrier's Payment Plan Quandary</name>
  <metadata>
  <md:version>1.1</md:version>
  <md:created>2008/06/10 15:01:35.195 GMT-5</md:created>
  <md:revised>2008/06/18 16:30:49.436 GMT-5</md:revised>
  <md:authorlist>
      <md:author id="IMP2">
      <md:firstname/>
      
      <md:surname>IMP</md:surname>
      <md:email>cosborne@keypress.com</md:email>
    </md:author>
  </md:authorlist>

  <md:maintainerlist>
    <md:maintainer id="IMP2">
      <md:firstname/>
      
      <md:surname>IMP</md:surname>
      <md:email>cosborne@keypress.com</md:email>
    </md:maintainer>
    <md:maintainer id="cosborne">
      <md:firstname>Christine</md:firstname>
      
      <md:surname>Osborne</md:surname>
      <md:email>cosborne@keypress.com</md:email>
    </md:maintainer>
  </md:maintainerlist>
  
  <md:keywordlist>
    <md:keyword>IMP Year 1</md:keyword>
    <md:keyword>The Game of Pig</md:keyword>
  </md:keywordlist>

  <md:abstract/>
</metadata>
  <content>
    <section id="id-268192876659">
      <name>Intent</name>
      <para id="id10153220">Students will employ their available tools to compute an expected value and compare it to a simulated result.</para>
    </section>
    <section id="id-852693168635">
      <name>Mathematics</name>
      <para id="id10063847">In the typical payment plan, a customer pays the same amount each week or month for a given service. In this activity, a newspaper carrier is paid by a particular customer by choosing, each week, two bills from a bag containing five $1 bills and one $10 bill. The task is to determine the average weekly payment—that is, the expected value—and compare it to the results of a simulation.</para>
    </section>
    <section id="id-844334650679">
      <name>Progression</name>
      <para id="id8433808">The activities in <emphasis>In the Long Run</emphasis> bring together all of the ideas developed thus far and set students up for the activities in <emphasis>Analyzing a Game of Chance</emphasis>, in which they will return to the unit problem.</para>
    </section>
    <section id="id-697567893974">
      <name>Approximate Time </name>
      <para id="id10210699">5 minutes for introduction</para>
      <para id="id10210703">25 minutes for activity (at home or in class)</para>
      <para id="id10210708">30 minutes for discussion</para>
    </section>
    <section id="id-860240183779">
      <name>Classroom Organization </name>
      <para id="id9405567">Individuals, followed by whole-class discussion</para>
    </section>
    <section id="id-180845450008">
      <name>Doing the Activity</name>
      <para id="id10136480">You may want to brainstorm with students how they could carry out this simulation if they didn’t have dollar bills—for example, by using five red cubes and one blue cube.</para>
    </section>
    <section id="id-685377496041">
      <name>Discussing and Debriefing the Activity</name>
      <para id="id10138303">Have students share their simulation methods and then compile the results. If the average of the data is close to the theoretical expected value of $5 per week, the class will probably not be able to draw any clear conclusions about which payment method produces more money for the newspaper carrier. </para>
      <para id="id10138312">The class may have used a variety of approaches to find the theoretical probabilities of getting $2 and of getting $11. However students find the probabilities, the “large number of trials” method can then be used to determine the expected value. As students share how they found the probabilities, help them to focus on the distinction between <emphasis>possible outcomes</emphasis> and <emphasis>equally likely outcomes</emphasis>. </para>
      <para id="id10161577">Labeling each individual bill can highlight the fact that the probability of drawing a $1 bill is not the same as the probability of drawing the $10 bill, but that the probability of drawing a particular $1 bill is the same as the probability of drawing the $10 bill. In other words, the equally likely outcomes for a given draw are the individual bills, not the amounts. </para>
      <para id="id8986668">In the area models below, T represents the $10 bill, and 
        <m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:msub><m:mi>O</m:mi><m:mstyle fontsize="8pt"><m:mrow><m:mn>1</m:mn></m:mrow></m:mstyle></m:msub></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{O rSub { size 8{1} } } {}</m:annotation></m:semantics></m:math>
      , 
<m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:msub><m:mi>O</m:mi><m:mstyle fontsize="8pt"><m:mrow><m:mn>2</m:mn></m:mrow></m:mstyle></m:msub></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{O rSub { size 8{2} } } {}</m:annotation></m:semantics></m:math>, 
<m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:msub><m:mi>O</m:mi><m:mstyle fontsize="8pt"><m:mrow><m:mn>3</m:mn></m:mrow></m:mstyle></m:msub></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{O rSub { size 8{3} } } {}</m:annotation></m:semantics></m:math>, 
<m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:msub><m:mi>O</m:mi><m:mstyle fontsize="8pt"><m:mrow><m:mn>4</m:mn></m:mrow></m:mstyle></m:msub></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{O rSub { size 8{4} } } {}</m:annotation></m:semantics></m:math>, and 
<m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:msub><m:mi>O</m:mi><m:mstyle fontsize="8pt"><m:mrow><m:mn>5</m:mn></m:mrow></m:mstyle></m:msub></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{O rSub { size 8{5} } } {}</m:annotation></m:semantics></m:math> represent the five $1 bills. If you use subscript notation, you might mention how to read subscripted variables (for example, “oh sub one”). To create an area model, it may help to think of the bills as drawn one after the other, rather than both at once. After the first draw, the diagram could look like this.</para>
      <figure id="id10059191">
        <media type="image/jpg" src="graphics1.jpg">
          <param name="height" value="281"/>
          <param name="width" value="307"/>
        </media>
      </figure>
      <para id="id10255286">For each choice of the first bill, there are five possibilities for the second bill, so each column is divided into five sections, yielding 30 equal parts that represent the equally likely outcomes. The ten shaded boxes represent the cases in which a $10 bill and a $1 bill have been drawn, for a total of $11. </para>
      <figure id="id9486733">
        <media type="image/jpg" src="graphics2.jpg">
          <param name="height" value="305"/>
          <param name="width" value="441"/>
        </media>
      </figure>
      <para id="id8887842">Thus, 
<m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:mrow><m:mi>P</m:mi><m:mrow><m:mrow><m:mfenced open="(" close=")"><m:mrow><m:mi>$</m:mi><m:mtext>11</m:mtext></m:mrow></m:mfenced><m:mo stretchy="false">=</m:mo><m:mfrac><m:mtext>10</m:mtext><m:mtext>30</m:mtext></m:mfrac></m:mrow><m:mo stretchy="false">=</m:mo><m:mfrac><m:mn>1</m:mn><m:mn>3</m:mn></m:mfrac></m:mrow></m:mrow></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{P left ($"11" right )= {  {"10"}  over  {"30"} } = {  {1}  over  {3} } } {}</m:annotation></m:semantics></m:math> and 
<m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:mrow><m:mi>P</m:mi><m:mrow><m:mrow><m:mfenced open="(" close=")"><m:mrow><m:mi>$</m:mi><m:mn>2</m:mn></m:mrow></m:mfenced><m:mo stretchy="false">=</m:mo><m:mfrac><m:mtext>20</m:mtext><m:mtext>30</m:mtext></m:mfrac></m:mrow><m:mo stretchy="false">=</m:mo><m:mfrac><m:mn>2</m:mn><m:mn>3</m:mn></m:mfrac></m:mrow></m:mrow></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{P left ($2 right )= {  {"20"}  over  {"30"} } = {  {2}  over  {3} } } {}</m:annotation></m:semantics></m:math>. </para>
      <para id="id10210437">The diagrams below avoid referring to individual bills. </para>
      <figure id="id9546571">
        <media type="image/jpg" src="graphics3.jpg">
          <param name="height" value="197"/>
          <param name="width" value="307"/>
        </media>
      </figure>
      <figure id="id8995928">
        <media type="image/jpg" src="graphics4.jpg">
          <param name="height" value="241"/>
          <param name="width" value="324"/>
        </media>
      </figure>
      <para id="id10220871">Some students may have constructed a tree diagram to represent the situation. If not, you might suggest this to reinforce the tool, which was introduced earlier. Such a tree diagram might look like this. </para>
      <figure id="id7394816">
        <media type="image/jpg" src="graphics5.jpg">
          <param name="height" value="388"/>
          <param name="width" value="197"/>
        </media>
      </figure>
      <para id="id8981761">It may be less cumbersome to make a separate diagram for each set of subbranches. </para>
      <figure id="id9996401">
        <media type="image/jpg" src="graphics6.jpg">
          <param name="height" value="217"/>
          <param name="width" value="335"/>
        </media>
      </figure>
      <para id="id9187055">Altogether, there are 30 possible paths, which correspond to the 30 boxes in the area model. Because the paths are all equally likely, each path has a probability of 
        <m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:mfrac><m:mn>1</m:mn><m:mn>3</m:mn></m:mfrac></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{ {  {1}  over  {3} } } {}</m:annotation></m:semantics></m:math>
      . Students can count paths to find the probability of each payment outcome. </para>
      <para id="id10152071">Ask whether anyone used another approach. Some students may have listed the possible combinations, without regard to which bill was picked first. Such a list might look like this. </para>
      <para id="id8883830">
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                    <m:mi>,</m:mi>
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                          <m:mstyle fontsize="8pt">
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                              <m:mn>3</m:mn>
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                    <m:mi>,</m:mi>
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                          <m:mtext>TO</m:mtext>
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                              <m:mn>4</m:mn>
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                    <m:mi>,</m:mi>
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                          <m:mstyle fontsize="8pt">
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            <m:annotation encoding="StarMath 5.0"> size 12{ ital "TO" rSub { size 8{1} } , ital "TO" rSub { size 8{2} } , ital "TO" rSub { size 8{3} } , ital "TO" rSub { size 8{4} } , ital "TO" rSub { size 8{5} } } {}</m:annotation>
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      </para>
      <para id="id9485505">
        <m:math>
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            <m:mrow>
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            <m:annotation encoding="StarMath 5.0"> size 12{O rSub { size 8{1} } ,O rSub { size 8{2} } ,O rSub { size 8{1} } ,O rSub { size 8{3} } ,O rSub { size 8{1} } ,O rSub { size 8{4} } ,O rSub { size 8{1} } ,O rSub { size 8{5} } } {}</m:annotation>
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      </para>
      <para id="id10411957">
        <m:math>
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      </para>
      <para id="id9493235">
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      </para>
      <para id="id10460149">
        <m:math>
          <m:semantics>
            <m:mrow>
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      </para>
      <para id="id10155721">As these 15 possibilities are equally likely, students can count to find the probabilities. You may want to ask why this method produces 15 possibilities, while the other methods show 30. The reason is that the list of combinations ignores different <emphasis>orders</emphasis>. For example, it shows 
       <m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:msub><m:mi>TO</m:mi><m:mstyle fontsize="8pt"><m:mrow><m:mn>1</m:mn></m:mrow></m:mstyle></m:msub></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{TO rSub { size 8{1} } } {}</m:annotation></m:semantics></m:math>
       but does not also show 
        <m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:mrow><m:msub><m:mi>O</m:mi><m:mstyle fontsize="8pt"><m:mrow><m:mn>1</m:mn></m:mrow></m:mstyle></m:msub><m:mi>T</m:mi></m:mrow></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{O rSub { size 8{1} } T} {}</m:annotation></m:semantics></m:math>.</para>
      <para id="id8976536">However students determine the probabilities, they can use the “large number of trials” method to find the expected value. For example, for 300 trials, the carrier will get $11 about 100 times (
       <m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:mfrac><m:mn>1</m:mn><m:mn>3</m:mn></m:mfrac></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{ {  {1}  over  {3} } } {}</m:annotation></m:semantics></m:math>
       of the cases) and $2 about 200 times (
<m:math><m:semantics><m:mrow><m:mstyle fontsize="12pt"><m:mrow><m:mfrac><m:mn>2</m:mn><m:mn>3</m:mn></m:mfrac></m:mrow></m:mstyle><m:mrow/></m:mrow><m:annotation encoding="StarMath 5.0"> size 12{ {  {2}  over  {3} } } {}</m:annotation></m:semantics></m:math> of the cases). Thus the carrier would expect to get $1,500 for 300 weeks, an expected value of exactly $5 a week. In other words, it turns out that the two plans have the same expected value. </para>
      <para id="id10410865">Ask students, <term>Which payment plan would you choose, and why?</term> Although the expected value is the same for both plans, money may not be the deciding factor for some students as to which method is better. Some students may argue that the sense of adventure that accompanies the second plan makes it preferable even if it were to produce less money in the long run, while others may prefer the security of the first plan even if it were to earn less.</para>
      <section id="id-921656525478">
        <name>Key Questions</name>
        <para id="id9709355">
          <term>Can you make a tree diagram for this problem?</term>
        </para>
        <para id="id9476413">
          <term>Did anyone use another approach?</term>
        </para>
        <para id="id9476419">
          <term>Which payment plan would you choose, and why?</term>
        </para>
      </section>
      <section id="id-35822730807">
        <name>Supplemental Activity</name>
        <para id="id10464845"><emphasis>Paying the Carrier</emphasis> (extension) asks students to devise a different payment system for the carrier.</para>
      </section>
    </section>
  </content>
</document>
