Practical 7 Objectives: Calculate the expected value and variance of a random variable using Excel. Give answers correct to 3 decimal places. 1. For a new car the number of defects X has the distribution given by the accompanying table. x 0 1 2 3 4 5 6 p(x) 0.06 0.18 0.30 0.21 0.15 0.08 0.02 Calculate: a. E(X) b. V(X) 2. A random variable, Claim amount (C), in ten thousand Rand, has probability distribution given by: 4 8 12 16 20 24 28 32 36 40 44 48 p(c) 0.013 0.033 0.033 0.047 0.013 0.02 0.02 0.053 0.047 0.047 0.033 0.04 52 56 60 64 68 72 76 80 84 88 92 96 100 p(c) 0.033 0.033 0.073 0.06 0.04 0.053 0.027 0.06 0.02 0.048 0.033 0.054 0.067 Calculate: a. The expected claim amount (in Rand value) b. The standard deviation in claim amount (in Rand value). Interpret in terms of Rand.