Answer:
(a) PC(C)=
(b) E[C] = 24 cents
Explanation:
Given:
Cost to receive a photo = 20 cents
Cost to send a photo = 30 cents
Probability of receiving a photo = 0.6
Probability of sending a photo = 0.4
We need to find
(a) PC(c)
(b) E[C]
Solution:
(a)
PC(C)=
(b)
Expected value can be calculated by multiplying probability with cost.
E[C] = Probability × cost
E[C] =