Question

When parking a car in a downtown parking lot, drivers pay according to the number of hours or fraction thereof. The probability distribution of the number of hours cars are parked has been estimated as follows:

X	1	2	3	4	5	6	7	8
P(X)	0.224	0.142	0.106	0.08	0.057	0.039	0.033	0.319

A. Mean =

B. Standard Deviation =

The cost of parking is 2.25 dollars per hour. Calculate the mean and standard deviation of the amount of revenue each car generates.

A. Mean =

B. Standard Deviation =

Answer 1

Answer

(A)Mean =

using the data table

And

(B)Standard deviation =

x(bar) is mean = 4.448, P(X) is probability and X is the given values in the data table

this implies

The cost of parking is 2.25 dollars per hour

(A) mean =

= 4.448*2.25

= $10.008

(B) Standard deviation =

= 8.10*2.25

= $18.225