### Assignment Instructions/ Description

Image transcription text2. An individual who has automobile insurance from a certain company is randomly selected.

Let Y be the number of moving violations for which the individual was cited during the last 3

years. The pmf of Y is

y

0

2

p(y)

0.70

0.15

0.10

0.05

(a) What is the cdf of Y ?.

(b) Suppose an individual with Y violations incurs a surcharge of 200Y . Calculate the

expected amount and the variance of the surcharge. .... Show moreï¿½