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. 0 1 2 3 y p(v) 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.

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. 0 1 2 3 y p(v) 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.

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Suppose that tax paid by a certain person per year is denoted T;, and is calculated using the following relationship to that persons gross income (G₁): Ti = 0.25(G₁ - 10000) (i.e, only people who have an income over $10,000 per year are taxed, and only the income beyond $10,000). You are told that the total gross income for an area with 200 people is $6,000,000. Assume that all the people measured make over $10,000 a year. (a) Find the total taxes collected for the 200 people. (b) Find ΣT; for the 200 people. 100 (c) Find (2G₁ – 40) for the 200 people.
(d) If X1,X2, ...,X, N(u, o²), and we use X as the point estimate u of the mean u, then (1) P{X = µ} = 1; (ii) P{X < A) = }: (iii) E(X) = µ; (iv) in approximately 95% of samples drawn, X will equal µ.