Question

The following distribution represents the number of credit cards that customers of a bank have. Find the mean number of credit cards.Number of cards X01234Probability P(X)0.140.40.210.160.09

Answer 1

To solve this problem we have a formula at hand: the mean (m) number of credits cards is

`m=\sum ^{}_XX\cdot P(X)`

Then,

`m=0\cdot0.14+1\cdot0.4+2\cdot0.21+3\cdot0.16+4\cdot0.09=1.66`