/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 39 A chemical supply company curren... [FREE SOLUTION] | 91Ó°ÊÓ

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A chemical supply company currently has in stock 100 lb of a certain chemical, which it sells to customers in 5 -lb batches. Let \(X=\) the number of batches ordered by a randomly chosen customer, and suppose that \(X\) has pmf \begin{tabular}{l|llll} \(x\) & 1 & 2 & 3 & 4 \\ \hline\(p(x)\) & \(.2\) & \(.4\) & \(.3\) & \(.1\) \end{tabular} Compute \(E(X)\) and \(V(X)\). Then compute the expected number of pounds left after the next customer's order is shipped and the variance of the number of pounds left. [Hint: The number of pounds left is a linear function of \(X\).]

Short Answer

Expert verified
Expected pounds left is 88.5 lbs and variance is 20.25 lbs².

Step by step solution

01

Understand the pmf of X

The probability mass function (pmf) for variable \(X\), the number of batches ordered, is given. Each batch is 5 lb, and the pmf for \(X\) is: \(p(1) = 0.2\), \(p(2) = 0.4\), \(p(3) = 0.3\), \(p(4) = 0.1\).
02

Calculate the Expected Value E(X)

The expected value \(E(X)\) is calculated by \(E(X) = \sum x \, p(x)\). Here, each value of \(x\) is multiplied by \(p(x)\), and results are summed up. Thus, \(E(X) = 1 \times 0.2 + 2 \times 0.4 + 3 \times 0.3 + 4 \times 0.1 = 2.3\).
03

Calculate the Variance V(X)

The variance \(V(X)\) is calculated by \(V(X) = E(X^2) - [E(X)]^2\). First, compute \(E(X^2) = \sum x^2 \, p(x)\): \(E(X^2) = 1^2 \times 0.2 + 2^2 \times 0.4 + 3^2 \times 0.3 + 4^2 \times 0.1 = 6.1\). Then, \(V(X) = 6.1 - (2.3)^2 = 6.1 - 5.29 = 0.81\).
04

Determine the Linear Function for Pounds Left

The number of pounds left \(Y\) after an order is \(Y = 100 - 5X\), where 5 lb is the weight of each batch.
05

Calculate E(100 - 5X)

Using the linearity of expectation, \(E(Y) = E(100 - 5X) = 100 - 5E(X)\). Substituting \(E(X) = 2.3\), we find \(E(Y) = 100 - 5\times2.3 = 88.5\).
06

Calculate V(100 - 5X)

Since variance of a constant is zero and the scaling property of variance applies, \(V(Y) = V(100 - 5X) = 25V(X)\). Substituting \(V(X) = 0.81\), we get \(V(Y) = 25 \times 0.81 = 20.25\).

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Probability Mass Function
Understanding the probability mass function (pmf) is a key component when dealing with discrete random variables like the number of batches ordered by a customer, denoted by \(X\). In this case, \(X\) is a discrete random variable because it can only take specific values: 1, 2, 3, or 4. The pmf specifies the probability that \(X\) takes on each of these values. Each value of \(X\) has an associated probability, given by: \(p(1) = 0.2\), \(p(2) = 0.4\), \(p(3) = 0.3\), and \(p(4) = 0.1\).

The sum of all probabilities in a pmf must equal 1, ensuring we have a complete distribution for the random variable. This distribution helps us understand the likelihood of various outcomes based on the pmf. It's a critical step in calculating other statistical measures like expected value and variance because it gives each outcome a specific weight or likelihood.
Variance Calculation
Variance measures the spread of a set of numbers. For a random variable \(X\), the variance \(V(X)\) quantifies how much the values of \(X\) deviate from the expected value \(E(X)\). A higher variance indicates that the values are more spread out.

To find the variance of \(X\), we use the formula \(V(X) = E(X^2) - [E(X)]^2\). Here, \(E(X^2)\) is the expected value of the squares of \(X\), calculated by summing \(x^2 \cdot p(x)\) for each possible value of \(x\). This provides a measure of the typical squared deviations from the mean.

In our exercise, \(E(X^2) = 6.1\) and \(E(X) = 2.3\), so \(V(X) = 6.1 - 5.29 = 0.81\). This tells us about the variability of the number of batches a customer might order. A small variance here indicates that the number of batches typically doesn't deviate much from the average.
Linear Transformation of Random Variables
Linear transformations involve changing the scale or position of a random variable using mathematical operations like multiplication or addition. In the context of this exercise, we consider the random variable \(Y = 100 - 5X\), where \(Y\) represents the number of pounds of chemical left after a customer's order. This equation is a linear transformation of \(X\).

The expected value and variance of \(Y\) can be calculated using properties of linear transformations. For the expected value, \(E(Y) = E(100 - 5X)\) simplifies to \(100 - 5E(X)\) because the expected value operator is linear. Substituting \(E(X) = 2.3\) into the equation gives \(E(Y) = 88.5\), indicating the average remaining pounds after an order.

The variance of \(Y\) is calculated with \(V(Y) = V(100 - 5X) = 25V(X)\) because variance is affected by the square of the scaling constant (in this case 5) and not by constant shifts like 100. This gives \(V(Y) = 20.25\), illustrating the spread of the number of pounds left. This understanding helps predict how far the actual number left may deviate from the average.

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Most popular questions from this chapter

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