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(n) Find the expected value and the variance of the total cost of repairs in a year. (b) The machine owner has the option of taking out a breakdown protection insurance policy. Under the terns of the policy, the insurance company will pay £100 towards the cost of repair whenever the machine breaks down. The policy itself costs L60 per year. Find the expected value anel variance of the total cost of repairs (ineluding the cost of taking out the policy) in this ease.

(n) Find the expected value and the variance of the total cost of repairs in a year. (b) The machine owner has the option of taking out a breakdown protection insurance policy. Under the terns of the policy, the insurance company will pay £100 towards the cost of repair whenever the machine breaks down. The policy itself costs L60 per year. Find the expected value anel variance of the total cost of repairs (ineluding the cost of taking out the policy) in this ease.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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3. It costs £150 to repair a washing machine when it breaks down. Suppose that the mumber of washing machine breakdowns in a year has a geometric distribution with parameter 0.8. (n) Find the expected value and the variance of the total cost of repairs in a year. (b) The machine owner has the option of taking out a breakdown protection insurance policy. Under the terms of the policy, the insurance company will pay £100 towards the cost of repanir wlenever the machine breaks down. The policy itself costs L60 per yenr. Find the expected value ael variance of the total cost of repairs (ineluding the Cost of taking out the poliey) in this ease.
Transcribed Image Text:3. It costs £150 to repair a washing machine when it breaks down. Suppose that the mumber of washing machine breakdowns in a year has a geometric distribution with parameter 0.8. (n) Find the expected value and the variance of the total cost of repairs in a year. (b) The machine owner has the option of taking out a breakdown protection insurance policy. Under the terms of the policy, the insurance company will pay £100 towards the cost of repanir wlenever the machine breaks down. The policy itself costs L60 per yenr. Find the expected value ael variance of the total cost of repairs (ineluding the Cost of taking out the poliey) in this ease.
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