Employees of a large company all choose 1 of 3 levels of health insurance coverage, for which premiums, denoted by x, are 1, 2, 3 respectively. Premiums are subject to a discount, denoted by y, of 0 for smokers and 1 for non-smokers. The joint probability density function of x and y is given by:
p(x,y) = { [(x² +y²)/31] for x = 1, 2, 3, and for y = 0, 1 }
0 otherwise
Calculate the Variance of (x – y), the total premium paid by a randomly chosen employee.
2007-08-23
18:00:13
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2 answers
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Anonymous