An individual who has automobile insurance from a certain company is randomly selected. Let Y be the number of moving violations for which the individual was cited during the last 3 years. The pmf of Y is a.? ?Compute E(Y). b. ?Suppose an individual with Y violations incurs a surcharge of $100Y2. Calculate the expected amount of the surcharge.

Answer: Step1: An individual who has automobile insurance from a certain company is randomly selected. Let Y be the number of moving violations for which the individual was cited during the last 3 years. The pmf of Y is Y 0 1 2 3 p(y) 0.6 0.25 0.1 0.05 Step2: a). To compute E(Y). E(y) = y p(y) = 0×0.6 + 1×0.25 + 2×0.1+ 3×0.05 = 0.6 Therefore, E(y) = 0.6 Step3: 2 b)....