Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. A shuttle operator has sold 20 tickets to ride the shuttle. All passengers (ticket holder) are independent of each other, and the probability that

3. A shuttle operator has sold 20 tickets to ride the shuttle. All passengers (ticket holder) are independent of each other, and the probability that a passenger is part of the frequent rider club is 0.65 (65% chance they are part of the group and 35% chance they are not). Let X be the number of passengers out of the 20 that are part of the frequent rider club.

a. Say each passenger is charged $3.00 for their tickets. What is the expected revenue? What is the variance of the revenue?

b. Now say each passenger in the frequent rider club are charged $2.00 for their tickets and the regular passengers (not in the frequent rider club) are charged $4.50 for their tickets. What is the expected revenue?

c. Let Yi be an indicator (yes or no) if the i-th passenger is in the frequent rider club (for i=1,2,...,20). What type of distribution does Yi follow and what is its parameter?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

A Survey Of Mathematics With Applications

Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde

11th Edition

0135740460, 978-0135740460

More Books

Students also viewed these Mathematics questions

Question

What is a residual plot?

Answered: 1 week ago