Mathematics, 18.11.2020 17:30 Neko1kat
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 past 3 years. The pmf of Y is:
y 0 1 2 3
P(y) 0.50 0.25 0.20 0.05
Required:
a. Compute E(Y) and V(3Y−10)
b. Suppose an individual with Y violations incurs a surcharge of $(95Y2−25). Calculate the expected amount of the surcharge.
c. What is the standard deviation of surcharges?
Answers: 1
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An individual who has automobile insurance from a certain company is randomly selected. Let Y be the...
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