EXAM P #130

mardi 24 mars 2015

The value of a piece of factory equipment after three years of use is

100(0.5)^X where X is a random variable having moment generating function



M(t) = 1/1-2t , t<1/2



Calculate the expected value of this piece of equipment after three years of use.







Why can't you find the expected value by taking the derivative of the mgf at t=0 for this problem?





EXAM P #130

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