An individual who has automobile insurance from a certain company is randomly selected. Let Y be the number of movingviolations for which the individual was cited during the last 3 years. The pmf of Y is the following.y123P(y)0.500.250.200.05(a) Compute E(Y).E(Y) = |(b) Suppose an individual with Y violations incurs a surcharge of $80Y2. Calculate the expected amount of thesurcharge.24

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

Answered: An individual who has automobile…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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In an effort to make the distribution of income more nearly equal, the government of a country passes a tax law that changes the Lorenz curve from y = 0.98x2.1for one year to y = 0.32x2 + 0.68x for the next year. Find the Gini coefficient of income for both years. (Round your answers to three decimal places.) after before
The analysis of tooth shrinkage by C. Loring Brace and colleagues at the University of Michigan’s Museum of Anthropology indicates that human tooth size is con-tinuing to decrease and that the evolutionary process has not yet come to a halt. In northern Europeans, for example, tooth size reduction now has a rate of 1% per 1000 years. a. If t represents time in years and y represents tooth size, use the condition that y = 0.99y0 when t = 1000 to find the value of k in the equation y = y0 ekt. Then use this value of k to answer the following questions. b. In about how many years will human teeth be 90% of their present size? c. What will be our descendants’ tooth size 20,000 years from now (as a percentage of our present tooth size)?
Determine the upper-tail critical value tα/2 in each of the following circumstances.
The analysis of tooth shrinkage byC. Loring Brace and colleagues at the University of Michigan’s Museum of Anthropology indicates that human tooth size is continuing to decrease and that the evolutionary process has not yetcome to a halt. In northern Europeans, for example, tooth sizereduction now has a rate of 1% per 1000 years.a. If t represents time in years and y represents tooth size, usethe condition that y = 0.99y0 when t = 1000 to find thevalue of k in the equation y = y0ekt. Then use this value of kto answer the following questions.b. In about how many years will human teeth be 90% of theirpresent size?c. What will be our descendants’ tooth size 20,000 years fromnow (as a percentage of our present tooth size)?
If X is exponentially distributed with parameter λ and Y is uniformly distributed on the interval [a, b], what is the moment generating function of X + 2Y ?
A certain brand of upright freezer is available in three different rated capacities: 16ft3, 18 ft3, and 20 ft3. Let X = the rated capacity of a freezer of this brand sold at acertain store. Suppose that X has pmfx 16 18 20p(x) .2 .5 3a. Compute E(X), E(X2), and V(X).b. If the price of a freezer having capacity X is 70X – 650, what is the expectedprice paid by the next customer to buy a freezer?c. What is the variance of the price paid by the next customer?d. Suppose that although the rated capacity of a freezer is X, the actual capacityis h(X) = X - .008X2. What is the expected actual capacity of the freezer purchasedby the next custom
a) Find the marginal pmfs of X and Y b) Find the conditional pmf of X given Y = 1
Assume S = $45, σ = 0.25, r = 0.05, div = 0.0, on a 45 strike call and 55 days until expiration. Given delta = 0.5502 and gamma = 0.0876, what is the delta-gamma approximation for the call price on a $0.90 stock price decline?
Show mathematically that MRS is increasing for U=1-ex +e2y and is diminishing for U=lnX +LnY
Consider the following initial-value problem.
Suppose that Yt follows a stationary AR(1) model with β0 = 0 and β1 = 0.5.If Yt = 10, what is your forecast of Yt+2 (that is, what is Yt+2|t)? What isYt+h|t for h = 20? Does this forecast for h = 20 seem reasonable to you?
For b there are two cases and for c I have to plug the initial data into the ode

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