Discrete and Continuous Random Variables.
The following table provides a probability distribution for the random variable x.
X: -2, 0, 3, 5
p(x): .10, .30, .20, .40
1. Compute μ, the expected value of x.
2. Suppose that in a certain market 40% of all new businesses fail in the first year. What is the probability that, of a random sample of 10 such new businesses in this market, exactly 5 fail in the first year? Assume that the failures are unrelated.
3. What is the number expected to fail?