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 2 P(y) 0.50 0.25 0.20 0.05 (a) Compute E(Y). E(Y) = (b) Suppose an individual with Y violations incurs surcharge of $120Y2. 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...
icon
Related questions
Question

Hello, I need help with this homework question

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
1
2
p(y)
0.50
0.25
0.20
0.05
(a) Compute E(Y).
Е(Y)
(b) Suppose an individual with Y violations incurs a surcharge of $120Y2. 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 1 2 p(y) 0.50 0.25 0.20 0.05 (a) Compute E(Y). Е(Y) (b) Suppose an individual with Y violations incurs a surcharge of $120Y2. Calculate the expected amount of the surcharge. $
Expert Solution
Step 1

Probability homework question answer, step 1, image 1

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer