Let Y be the number of moving violationgs for which an idivi
Let Y be the number of moving violationgs for which an idividual student was cited during the last 3 years. The pmf of Y is (for y=0, P(y) = 0.6), (for y=1, P(y) = 0.25), (for y=2, P(y) = 0.1), (for y = 3, P(y) = 0.05).
a. Compute E(Y)
b. Suppose an individual student with Y violations incurs a surcharge of $100Y2. Calculate the expected amount of the surcharge.
Solution
