CH%202_P2 - will pay an average of.2*1 = 20 cents per visit...

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Chap. 2 P2 Page 1 Chapter 2 Problem 2 2a. If RN < 0.2 pay $1.00;otherwise pay nothing. 2b. If RN < 0.60 pay $10.00;otherwise pay $9.00. 2c. On the average, if customer comes many times customer
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Unformatted text preview: will pay an average of .2*1 = 20 cents per visit in part (a) and .6*10 + .4*9 = $9.60 in part (b). This follows from definition of expected value....
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