Answer:
(a) The average baggage-related revenue per passenger is $15.70.
(b) The standard deviation of baggage-related revenue is $19.95.
(c) The expected revenue for 120 passengers is $1,884.
Step-by-step explanation:
Let the random variable <em>X</em> represent the baggage-related revenue per passenger.
It is provided that the baggage fees is $25 for the first bag and $35 for the second.
The probability model is:
X : 0 25 60
P (X) : 0.54 0.34 0.12
(a)
Compute the average baggage-related revenue per passenger as follows:
Thus, the average baggage-related revenue per passenger is $15.70.
(b)
Compute the standard deviation of baggage-related revenue as follows:
Thus, the standard deviation of baggage-related revenue is $19.95.
(c)
Compute the expected revenue for 120 passengers as follows:
Thus, the expected revenue for 120 passengers is $1,884.