1. An individual who has car insurance from a certain company is randomly selected. Let Y…

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1. An individual who has car insurance from a certain company is randomly selected. Let Y…

1. An individual who has car 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 probability distribution of Y is given in the table below: Ply) 0. 600 .25 0.10 0.05 a. Determine the expected value of Y, that is E(Y). [4 points) E(Y)=0(0.6) + 110.25) +2(0.10) +3(0.05) E(Y)=0.6 b. Suppose an individual with Y violations incurs a surcharge of $100XY?. Calculate the expected amount of the surcharge. (Hint: Calculate , 1000:)2 x P(y)] [4 points) C. Suppose a municipality wants an expected profit (over 3 years) of $180 per car owner. Find N, where violations incur the surcharge of $NXY. (2 points) 1087 words * Focus 2 by —
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