If the number of accidents per day, Y, is assumed to have a Poisson distribution with mean 10, how can I find the expected cost to an insurance company per day, X, where X = 2000 - 3Y - Y^2?
If the number of accidents per day, Y, is assumed to have a Poisson distribution with mean 10, how can I find the expected cost to an insurance company per day, X, where X = 2000 - 3Y - Y^2?
Thanks,
Paul
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So the speed bump is getting . There are several ways of getting it. Here's the simplest:
Recall that . You know Var(Y) and E(Y) so you can substitute and solve for .