Mathematics, 28.02.2020 03:45 treytonmesser
An individual who has automobile insurance from a certain company is randomly selected. Let Y be the number of moving violations for which the individual was cited during the last 3 years. The pmf of Y is the following.
y 0 1 2 3
p(y) 0.50 0.25 0.20 0.05
(a) Compute E(Y).
E(Y) =
(b) Suppose an individual with Y violations incurs a surcharge of $110Y2. Calculate the expected amount of the surcharge.
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An individual who has automobile insurance from a certain company is randomly selected. Let Y be the...
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