You are a salesman selling gold-plated hubcaps for cars. In any given month the probability that you sell N sets of hubcaps (a set has 4 hubcaps) is random and is given by the following mass function P(N = n) = a / 3^(n+1) , n ≥ 0, for some constant a. Your boss will give you a bonus of $2000 if you sell at least 3 sets of hubcaps. What is the Expected value of the bonus that you get in a month?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
You are a salesman selling gold-plated hubcaps for cars. In any given month the
P(N = n) = a / 3^(n+1) , n ≥ 0,
for some constant a. Your boss will give you a bonus of $2000 if you sell at least 3 sets of hubcaps. What is the
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
