Compute the Variance and Standard Deviation of a Discrete Random

question 10

Multiple Choice

Compute the Variance and Standard Deviation of a Discrete Random Variable
-The owner of a farmer s market was interested in determining how many oranges a person buys when they buy oranges. He asked the cashiers over a weekend to count how many oranges a person bought when they bought oranges and record this number for analysis at a later time. The data is given below in the table. The random variable x represents the number of oranges purchased and P(x) represents the probability that a customer will buy x oranges. Determine the variance of the number of oranges purchased by a customer. $\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|}\hline x & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & 9 & 10 \\\hline P(x) & 0.05 & 0.19 & 0.20 & 0.25 & 0.12 & 0.10 & 0 & 0.08 & 0 & 0.01 \\\hline\end{array}$

• A) \(3.57\)
• B) \(1.95\)
• C) \(3.97\)
• D) \(0.56\)

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Definitions:

Internal Failure Cost

Costs associated with defects found before a product or service is delivered to the customer, such as scrap and rework expenses.

Value-Added Activity

An activity that is needed to meet customer requirements.

Preventive Maintenance

Preventive maintenance involves regularly scheduled inspections, service, and repairs of equipment and facilities to prevent unexpected breakdowns and extend their useful life.

Value-Added

The enhancement added to a product or service by a company before offering it to customers, representing the difference between the cost of inputs and the value of outputs.