A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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An certain brand of upright freezer is available in three different rated capacities: 16 ft3, 18 ft3, and 20 ft3. Let X = the rated capacity of a freezer of this brand sold at a certain store. Suppose that X has the following pmf.

x 16 18 20
p(x)       0.4     0.1     0.5  
(a) Compute E(X), E(X2), and V(X).
E(X) =   ft3
E(X2) =  
V(X)

(b) If the price of a freezer having capacity X is 67X − 650, what is the expected price paid by the next customer to buy a freezer?


(c) What is the variance of the price paid by the next customer?


(d) Suppose that although the rated capacity of a freezer is X, the actual capacity is h(X) = X − 0.009X2. What is the expected actual capacity of the freezer purchased by the next customer? (Enter your answer to four decimal places.)
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