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THE PROFESSIONAL LIFE

Do the Math

A car dealership sells 0, 1, or 2 luxury cars on any day. When selling a car, the dealer also tries to persuade the customer to buy an extended warranty for the car. Let X denote the number of luxury cars sold in a given day, and let Y denote the number of extended warranties sold.
P(X = 0, Y = 0) = / 6
P(X = 1, Y = 0) = 1/12
P(X = 1, Y = 1) = /6
P(X = 2, Y = 0) = /12
P(X = 2, Y = 1) = /3
P(X = 2, Y = 2) = 1/6

What is the variance of X?

  1. 0.47
  2. 0.58
  3. 0.83
  4. 1.42
  5. 2.58
View Answer