Compute the Mean of the Random Variable with the Given $\begin{array} { c l } \hline x & P ( x ) \\\hline 0 & 0.2 \\10 & 0.2 \\25 & 0.4 \\30 & 0.2 \\\hline\end{array}$

question 13

Multiple Choice

Compute the mean of the random variable with the given discrete probability distribution.
$\begin{array} { c l } \hline x & P ( x ) \\\hline 0 & 0.2 \\10 & 0.2 \\25 & 0.4 \\30 & 0.2 \\\hline\end{array}$

• A)16.25
• B)11.2
• C)126.0
• D)18

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Definitions:

Personal Income Taxes

Taxes levied on individuals or households based on their total personal income from all sources.

Ability-To-Pay

A tax principle that holds that taxes should be levied on individuals based on their capacity to pay, typically reflected in their income or wealth levels.

Ability-To-Pay Principle

The principle of tax fairness by which those with greater ability to pay a tax should pay more tax.

Ability-To-Pay

A concept in taxation that taxes should be levied according to an individual or entity’s ability to shoulder the tax burden.