Question

The census bureau tells us the distribution of motor vehicles per household in in America is given by:

# of cars | 0 Proportion 0.010.34 1 4 0.37 0.14 0.05 0.09a) What is the expected value of the distribution?

b) Interpret the expected value.

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Answer #1

a)

EV = 0 * 0.01 + 1 * 0.34 + 2 * 0.37 + 3 * 0.14 + 4 * 0.05 + 5 * 0.09

So,

EV = 2.15

b)

The expected value tells us that mean number of cars per household is 2.15

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