SOLUTION: Suppose you have a taxing policy where 60% of the population pays $10,000 per year in taxes per person, and the other 40% pays $100 per year in taxes per person. What is the expec

Question 587079: Suppose you have a taxing policy where 60% of the population pays $10,000 per year in taxes per person, and the other 40% pays $100 per year in taxes per person.
What is the expected value for the amount of yearly taxes paid by one person in this population?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Suppose you have a taxing policy where 60% of the population pays $10,000 per year in taxes per person, and the other 40% pays $100 per year in taxes per person.
What is the expected value for the amount of yearly taxes paid by one person in this population?
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E(x) = 0.60*10000 + 0.40*100 = 6000 + 40 = $6040
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Cheers,
Stan H.
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