Reference no: EM131651694

Question: 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 = 5x. 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.