(a) Compute E(Y). E(Y) = (b) Suppose an individual with Y violations incurs a surcharge of $90Y2. Calculate $

MATLAB: An Introduction with Applications
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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
0.45 0.25
2
3
0.25 0.05
P(Y)
(a) Compute E(Y).
E(Y) =
(b) Suppose an individual with Y violations incurs a surcharge of $90Y2. Calculate the expected amount of the surcharge.
$
Transcribed Image Text: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 0.45 0.25 2 3 0.25 0.05 P(Y) (a) Compute E(Y). E(Y) = (b) Suppose an individual with Y violations incurs a surcharge of $90Y2. Calculate the expected amount of the surcharge. $
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