$$\vert+ \rangle_{y}{_{y}\langle +\vert}\psi \rangle\langle \psi\vert \; \; .$$
Now, we insert the oven mixed state into where the density matrix for $\vert\psi \rangle$ would be to get
$$P_{+_{y}} \,=\, \vert+ \rangle_{y}{_{y}\langle +\vert}\left(\frac{1}{2}\vert+ \rangle\langle +\vert \: + \: \frac{1}{2}\vert- \rangle\langle -\vert\right) \; \; .$$
Matrix notation will be necessary to move from this point. Rewriting the above statement, we have
$$\frac{1}{2}\left(\begin{array}{c} 1\\ i\\ \end{array}\right) \left(\begin{array}{cc} 1&-i\\ \end{array}\right) \frac{1}{2}\left[\left(\begin{array}{c} 1\\ 0\\ \end{array}\right) \left(\begin{array}{cc} 1&0\\ \end{array}\right) \; + \; \left(\begin{array}{c} 0\\ 1\\ \end{array}\right) \left(\begin{array}{cc} 0&1\\ \end{array}\right)\right] \; \; . $$
Computing the outer products, factoring, and adding the oven density operator terms will give
$$\frac{1}{4}\left(\begin{array}{cc} 1&i\\ -i&1\\ \end{array}\right) \left(\begin{array}{cc} 1&0\\ 0&1\\ \end{array}\right) \; \; . $$
The right matrix is just the identity matrix, so the trace of the left matrix multiplied by $\frac{1}{4}$ will give
$$P_{+_{y}}=\frac{1}{2} \; \; . $$ This is the probability we receive from the experiments previously performed.
$$\langle \hat{S}_{z} \rangle \, = \, \langle \psi \vert \hat{S}_{z} \vert \psi \rangle \, = \, \hat{S}_{z} \vert \psi \rangle \langle \psi \vert \; \; . $$
Now, we can insert the density matrix representation of the oven into the outer product of the arbitrary $\vert \psi \rangle $ to get
$$\langle \hat{S}_{z} \rangle \, = \, \hat{S}_{z} \frac{1}{2} \left(\vert + \rangle \langle + \vert \, + \, \vert - \rangle \langle - \vert \right) \; \; . $$
If you wish, have one-third of the class each perform this calculation for the spin operators in the x, y, and z orientation.
To carry this concept further, the uncertainty of an operator is just composed of two expectation values. If the uncertainty of the operator $\hat{S}_{z}$ is defined as
$$\sqrt{\langle \hat{S}_{z}^{2} \rangle - \langle \hat{S}_{z} \rangle ^{2} } \; \; , $$
then the uncertainty of a measurement out of the oven could also be calculated using density matrices.
Again, time permitting, have one-third of the class each perform this calculation for the spin operators in the x, y, and z orientation.