Answer:
(a) PC(C)= [tex]\left \{ {{0.6 \ \ \ \ x=20} \atop 0.4 \ \ \ \ {x=30}} \right. \\\ 0 \ \ \ \ \ \ \ else[/tex]
(b) E[C] = 24 cents
Step-by-step explanation:
Given:
Cost to receive a photo = 20 cents
Cost to send a photo = 30 cents
Probability of receiving a photo = 0.6
Probability of sending a photo = 0.4
We need to find
(a) PC(c)
(b) E[C]
Solution:
(a)
PC(C)= [tex]\left \{ {{0.6 \ \ \ \ c=20} \atop 0.4 \ \ \ \ {c=30}} \right. \\\ 0 \ \ \ \ \ \ \ else[/tex]
(b)
Expected value can be calculated by multiplying probability with cost.
E[C] = Probability × cost
E[C] = [tex]0.6\times20 +0.4 \times 30 = 12 + 12 = 24\ cents[/tex]
