An appliance dealer sells three different models of upright freezers having 13.5, 15.9, and 19.1 cubic feet of storage space, respectively. Let X = the amount of storage space purchased by the next customer to buy a freezer. Suppose that X has pmf
a. Compute
b. If the price of a freezer having capacity X cubic feet is 25X - 8.5, what is the expected price paid by the next customer to buy a freezer?
c. What is the variance of the price 25X - 8.5 paid by the next customer?
d. Suppose that although the rated capacity of a freezer is X, the actual capacity is
What is the expected actual capacity of the freezer purchased by the next customer?
Correct Answer:
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