Edexcel S2 2017 October — Question 2

Exam BoardEdexcel
ModuleS2 (Statistics 2)
Year2017
SessionOctober
TopicContinuous Probability Distributions and Random Variables
TypeDirect variance calculation from pdf

2. The weekly sales, \(S\), in thousands of pounds, of a small business has probability density function $$\mathrm { f } ( s ) = \left\{ \begin{array} { c c } k ( s - 2 ) ( 10 - s ) & 2 < s < 10
0 & \text { otherwise } \end{array} \right.$$
  1. Use algebraic integration to show that \(k = \frac { 3 } { 256 }\)
  2. Write down the value of \(\mathrm { E } ( S )\)
  3. Use algebraic integration to find the standard deviation of the weekly sales. A week is selected at random.
  4. Showing your working, find the probability that this week's sales exceed \(\pounds 7100\) Give your answer to one decimal place. A quarter is defined as 12 consecutive weeks. The discrete random variable \(X\) is the number of weeks in a quarter in which the weekly sales exceed £7100 The manager earns a bonus at the following rates:
    \(\boldsymbol { X }\)Bonus Earned
    \(X \leqslant 5\)\(\pounds 0\)
    \(X = 6\)\(\pounds 1000\)
    \(X \geqslant 7\)\(\pounds 5000\)
  5. Using your answer to part (d), calculate the manager's expected bonus per quarter.