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An individual who has automobile insurance from a certain company is randomly selected. Let Y be the number of moving violations for which the individual was cited during the last 3 years. The pmf of Y is the following.

y 0 1 2 3
p(y)       0.60     0.25     0.10     0.05  

(a) Compute E(Y).

E(Y) =  

(b) Suppose an individual with Y violations incurs a surcharge of $110Y2. Calculate the expected amount of the surcharge.

$

Statistics and Probability, Statistics

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