What is the variance of the amount of money

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Reference no: EM132197993

Question: Each day Max commutes to campus on his bike, but if the weather is bad, he takes the subway. The subway costs $2.75 per ride, so on days he takes the subway he spends $5.50. Over the course of a semester, Max commutes to NYU 75 times. Each day there is a 20% chance of bad weather that would prevent Max from taking his bike. Every day the weather is completely independent of the previous day.

a) How much is he expected to spend on subway fares in a semester?

b) What is the variance of the amount of money he spends on the subway?

Reference no: EM132197993

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