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A computer store purchased three computers of a certain type at $500 a piece. It will sell them for $1000 a piece. The manufacturer has agreed to repurchase any computers still unsold after a specified period at $200 a piece. Let X denote the number of computers sold, and suppose that p(0)=0.1, p(1)=0.2, p(2)=0.3, p(3)=0.4.
Problem i. Compute the value of E(X)
Problem ii. Determine the expected profit: h(x) = revenue - cost
Problem iii. Compute the Variance of h(X)
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