Problem: Company F sells fabrics known as fat quarters, which are rectangles of fabric created by cutting a yard of fabric into four pieces. Occasionally the manufacturing process results in a fabric defect. Let the random variable X represent the number of defects on a fat quarter created by Company F. The following table shows the probability distribution of X.
(a) Construct the probability distribution of the random variable Y
(b) Determine the mean and standard deviation of Y. Show your work.
Company G also sells fat quarters. The mean and standard deviation of the number of defects on a fat quarter that can be sold by Company G are 0.40 and 0.66, respectively. The fat quarters sell for $5.00 each, but are discounted by $1.50 for each defect found.
(c) What are the mean and standard deviation of the selling price for the fat quarters sold by Company G?