Question
For a $10 monthly fee, a gas company guarantees customers complete service. Records show that of their 20,000 customers, 1000 customers required one service call
For a $10 monthly fee, a gas company guarantees customers complete service. Records show that of their 20,000 customers, 1000 customers required one service call in a typical month, and 200 required two service calls. No customer required more than two service calls. Each service call costs the gas company $80.
(a) Let X be the random variable defined as the profit (per
month) that the gas company makes on a randomly chosen
customer. Construct the probability distribution of X. [4
marks]
(b) Calculate the mean and standard deviation of X, and
interpret the values of these parameters. [4 marks]
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