Possible values of X, the number of components in a system submitted for repair that must be replaced, are 1, 2, 3, and 4 with corresponding probabilities .15, .35, .35, and .15, respectively. a. Calculate E(X) and then E(5 2 X). b. Would the repair facility be better off charging a flat fee of $75 or else the amount $[150/(5 2 X)]

Step-by-step explanation:

Given that possible values of X, the number of components in a system submitted for repair that must be replaced, are 1, 2, 3, and 4 with corresponding probabilities .15, .35, .35, and .15, respectively

To find E(x)

To find E(5.2x)

By linear property ofExpectation we have

E(5.2x) =

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Flat fee of 75 would incur a cost of 75*2.5 = 187.50

Instead 150 (5.2x) would incur on an average = 150

The second one is preferred as it shows cost to be lower.

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step-by-step explanation: