Consider the following discrete probability distribution:
x P(x)
5……………………..0.10
10……………………..0.15
15……………………..0.25
20……………………..0.50
a. Calculate the expected value of the random variable.
b. Let y = x + 5. Calculate the expected value of the new random variable y.
c. Let z = 5 x. Calculate the expected value of the new random variable z.
d. From your calculations in part a and part b, indicate the effect that adding a constant to a random variable has on the expected value of the random variable.
e. From your calculations in part a and part c, indicate the effect that multiplying a random variable by a constant has on the expected value of the random variable.