1a) After an analysis of incoming faxes, the manager of an accounting firm determined the probability distribution of the number of pages per facsimile as follows: x 1 2 3 4 5 6 7 P(x) .05 .12 .20 .30 .15 .10 .08 Compute the mean and variance of the number of pages per fax.
Mean=4 and variance=2.4
b)Further analysis by the manager revealed that the cost of processing each page of a fax is $.25. Determine the mean and variance of the cost per fax.
2) It costs $1 to buy a lottery ticket, which has 5 prizes. The prizes and the probability that a player wins the prize are listed here. Calculate the expected value of the payoff.
Prize ($) 1 000 000 200 000 50 000 10 000 1 000
Probability 1/10 million 1/1 million 1/500 000 1/50 000 1/10 000
Need help with 1b) and 2)
