Sally’s Hair Salon purchases hair dye and records the dye as an asset. As they are used, they are expensed. This is an example o
2 answers:
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Answer:
a)
And replacing we got:
b)
And then the expected value would be:
Step-by-step explanation:
We assume the following distribution given:
Y 0 1 2 3
P(Y) 0.60 0.25 0.10 0.05
Part a
We can find the expected value with this formula:
And replacing we got:
Part b
If we want to find the expected value of we need to find the expected value of Y^2 and we have:
And replacing we got:
And then the expected value would be:
Or, if you're familiar with the empirical rule and the basic properties of the normal distribution, you can use the fact that approximately
which means about
Because the distribution is symmetric, you have