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Carl decides to sell his old laptop on eBay, and sequentially receives bids from potential buyers. The minimum price that he will accept to sell his laptop for is $600. Let {Xn, n ≥ 0} denote the sequence of independent and identically distributed bids that Carl receives, and assume that each Xn has the following probability density function fX (x) = (1/400)e −x/400 for x ≥ 0. Let N denote the number of bids that Carl obtains before selling his laptop i.e., Carl sells his laptop to the Nth bid. (a) Find E[N]. (b)Find E[XN ].

Carl decides to sell his old laptop on eBay, and sequentially receives bids from potential buyers. The minimum price that he will accept to sell his laptop for is $600. Let {Xn, n ≥ 0} denote the sequence of independent and identically distributed bids that Carl receives, and assume that each Xn has the following probability density function fX (x) = (1/400)e −x/400 for x ≥ 0. Let N denote the number of bids that Carl obtains before selling his laptop i.e., Carl sells his laptop to the Nth bid. (a) Find E[N]. (b)Find E[XN ].

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.1: Continuous Probability Models
Problem 35E
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Carl decides to sell his old laptop on eBay, and sequentially receives bids from potential buyers. The minimum price that he will accept to sell his laptop for is $600. Let {Xn, n ≥ 0} denote the sequence of independent and identically distributed bids that Carl receives, and assume that each Xn has the following probability density function

fX (x) = (1/400)e −x/400 for x ≥ 0.

Let N denote the number of bids that Carl obtains before selling his laptop i.e., Carl sells
his laptop to the Nth bid.

(a) Find E[N].

(b)Find E[XN ].

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