# Question

The ATM at a local convenience store allows customers to make withdrawals of $10, $20, $50, or $100. Let X denote a random variable that indicates the amount withdrawn by a customer. The probability distribution of X is

P (10) = 0.2

P (20) = 0.5

P (50) = 0.2

P (100) = 0.1

(a) Draw the probability distribution of X.

(b) What is the probability that a customer withdraws more than $20?

(c) What is the expected amount of money withdrawn by a customer?

(d) The expected value is not a possible value of the amount withdrawn. Interpret the expected value for a manager.

(e) Find the variance and standard deviation of X.

P (10) = 0.2

P (20) = 0.5

P (50) = 0.2

P (100) = 0.1

(a) Draw the probability distribution of X.

(b) What is the probability that a customer withdraws more than $20?

(c) What is the expected amount of money withdrawn by a customer?

(d) The expected value is not a possible value of the amount withdrawn. Interpret the expected value for a manager.

(e) Find the variance and standard deviation of X.

## Answer to relevant Questions

A company orders components from Japan for its game player. The prices for the items that it orders are in Japanese yen. When the products are delivered, it must convert dollars into yen to pay the Japanese producer. When ...A construction company manages two large building projects. Both require about 50 employees with comparable skills. At a meeting, the site managers from the two projects got together to estimate the labor needs of their ...If an investor decides on the all-Microsoft portfolio (in the text example), does it make sense to use the Sharpe ratio to decide whether to invest $2,000 or $4,000? A student budgets $60 weekly for gas and a few quick meals off-campus. Let X denote the amount spent for gas and Y the amount spent for quick meals in a typical week. Assume this student is very disciplined and sticks to the ...A direct sales company has a large sales force that visits customers. To improve sales, it designs a new training program. To see if the program works, it puts some new employees through this program and others through the ...Post your question

0