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 3 p(y) | 0.45 | 0.25 | 0.25 | 0.05 Suppose an individual with Y violations incurs a surcharge of 80Y² ($). The expected amount of the surcharge is 64.8 160 || 186.2|| 136

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
1
2
3
ply) 0.45 | 0.25 | 0.25 | 0.05
Suppose an individual with Y violations incurs a surcharge of 80Y2 ($). The
expected amount of the surcharge is
64.8
160
186.2
136
Transcribed Image Text:An individual who has automobile insurance from a certain company is randomly selected. Let Y be the number of moving violations for which the individual was cited during the last 3 years. The pmf of Y is the following. y 1 2 3 ply) 0.45 | 0.25 | 0.25 | 0.05 Suppose an individual with Y violations incurs a surcharge of 80Y2 ($). The expected amount of the surcharge is 64.8 160 186.2 136
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