Question 1

Paper 2Medium5 marks

At a parcel centre, XX is the excess handling time, in minutes, for a randomly selected parcel. Figure 1 shows the probability distribution of XX

012300.10.20.30.40.50.6Excess handling time, x (min)P(X=x)0.200.500.30
(a)

Calculate E(X)\mathrm{E}(X) and Var(X)\mathrm{Var}(X)

[3]
(b)

For a parcel with excess handling time XX the additional handling charge YY in AUD, is modelled by Y=3X+2Y=3X+2 Hence determine E(Y)\mathrm{E}(Y) and Var(Y)\mathrm{Var}(Y)

[2]

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