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

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

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