A company that sells binders decides to run a promotion on their 1-inch and 2-inch size binders. They discount the 1-inch binders to $1 per binder and discount the 2-inch binders to $2 per binder. They limit
sales to a quantity of 5 of each size of binder per customer. The probability distribution of "X = the number
of 1-inch binders purchased by a single customer during the promotion period" is given in the table below.
Х
1 2 3
5
P(X) 0.02 0.09 0.12 0.15 0.62
a) Compute the mean and standard deviation of X
b) The company's cost of manufacturing a single 1-inch binder is $0.25. What is the expected profit (in
dollars) that the company will make, per customer, for 1-inch binder sales during the promotion?
C) The mean and standard deviation of "Y = the number of 2-inch binders purchased by a single
customer" is 2.74 and 1.25, respectively. Assume that the number of 1-inch and 2-inch binders
purchased are independent random variables. What are the mean and standard deviation of the total
number of binders purchased by a single customer?