(a) Compute E(Y). E(Y) = (b) Suppose an individual with Y violations incurs a surcharge of $90Y2. Calculate $
(a) Compute E(Y). E(Y) = (b) Suppose an individual with Y violations incurs a surcharge of $90Y2. Calculate $
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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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
0
1
0.45 0.25
2
3
0.25 0.05
P(Y)
(a) Compute E(Y).
E(Y) =
(b) Suppose an individual with Y violations incurs a surcharge of $90Y2. Calculate the expected amount of the surcharge.
$
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