Hello,

A bank grants mortgages to 87% of all applicants. After the applicant gets approval, the bank sends an appraiser to evaluate the value of the property. The bank pays an appraiser a salary of $2000 a month plus $200 for each appraisal. Assume the bank gets 10 loan applications next month.

16. What is the variance of the amount of money the bank will have to pay its appraiser?

17. What is the expected value of the amount of money the bank will have to pay its appraiser?