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Let X Represent the Number of Computers in an Australian x12345p(x)0.250.330.170.150.10\begin{array} { | l | r | r | r | r | r | } \hline x & 1 & 2 & 3 & 4 & 5 \\\hline p ( x ) & 0.25 & 0.33 & 0.17 & 0.15 & 0.10 \\\hline\end{array}

question 19

Essay

Let X represent the number of computers in an Australian household, for those that own a computer. x12345p(x)0.250.330.170.150.10\begin{array} { | l | r | r | r | r | r | } \hline x & 1 & 2 & 3 & 4 & 5 \\\hline p ( x ) & 0.25 & 0.33 & 0.17 & 0.15 & 0.10 \\\hline\end{array} a. Find and interpret the expected number of computers in a randomly selected Australian household.
b. Find the variance of the number of computers in a randomly selected Australian household.


Definitions:

Payback Criterion

A capital budgeting method that measures the time required to recoup the initial investment in a project.

Mutually Exclusive

Referring to events or choices that cannot occur or be taken simultaneously; selecting one option excludes the availability or selection of the other.

Payback Cutoff

The maximum acceptable period within which an investment should recover its initial costs, used as a criterion for investment decisions.

Net Present Values

The calculation of the present value of an investment's expected cash flows minus the initial investment cost.

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