An individual who has automobile insurance from a certain company is randomly selected. Let Y be the number of mov- ing violations for which the individual was cited during the last 3 years. The pmf of Y is:

y 0 1 2 3
P(y) 0.50 0.25 0.20 0.05

a. Compute E(Y).
b. Suppose an individual with Y violations incurs a surcharge of $110Y2. Calculate the expected amount of the surcharge.

Amachine that produces a special type of transistor (a component of computers) has a 2% defective rate. the production is considered a random process where each transistor is independent of the others. (a) what is the probability that the 10th transistor produced is the first with a defect? (b) what is the probability that the machine produces no defective transistors in a batch of 100? (c) on average, how many transistors would you expect to be produced before the first with a defect? what is the standard deviation? (d) another machine that also produces transistors has a 5% defective rate where each transistor is produced independent of the others. on average how many transistors would you expect to be produced with this machine before the first with a defect? what is the standard deviation? (e) based on your answers to parts (c) and (d), how does increasing the probability of an event a↵ect the mean and standard deviation of the wait time until success?