Answer:
$1300
Step-by-step explanation:
λ = average = 2 per day, Y denotes the number of breakdowns per day,
But E(Y) = λ, E[Y(Y - 1)] = λ²
E(Y²) = E[Y(Y - 1)] + E(Y), hence:
E(Y²) = λ² + λ
The daily revenue is R=1600−50Y². The expected daily revenue for the extruder E(R) is:
E(R) = E(1600−50Y²) = 1600 - 50E(Y²)
E(R) = 1600 - 50(λ² + λ)
Substituting:
E(R) = 1600 - 50(2² + 2)
E(R) = 1600 - 300 = 1300
E(R) = $1300
