In: Statistics and Probability
The value of a car depends on its age, X. A car is drawn at random with the probability mass function for X (age) of p(x)=c/x for x=1,2,3,4.
a)What is the value of c?
b)If Value depreciates 5 (thousand dollars) each year so Value=30-5X. What are the expected value and variance of Value?
c)If Value=30-8X+X2, what is the expected value of Value?