Question
3 After having your family visit for the holidays, you are shocked by your movie rental bill for the month. Currently you are paying $2.99
3 After having your family visit for the holidays, you are shocked by your movie rental bill for the month. Currently you are paying $2.99 for each movie you rent. A subscription will allow you to watch unlimited movies for $9.99 per month. However, during a normal month there is often not time available to sit and watch movies, and you do not want to needlessly increase your monthly bills. Since you are a statistics student, you decide to check your online billing statements and make a probability distribution for the number of movies you watch each month. The results are in the table below. Should you go ahead and order the monthly subscription? (Hint: Find the expected number of movies you might watch per month. Use this number and multiply by $2.99 to find your expected monthly cost and compare.)
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