A mail-order company sends an offer to its population of customers. For a randomly chosen customer, let be 0 if the customer does not buy anything, and 1 if the customer does buy something following the offer. Later, the company sends out a second offer to its customers, and let be analogous to for the second offer. The joint probability distribution for the variables and is as given in the following table:
Provide answers to the following to two decimal places.
Part a)
Find the expectation of .
Part b)
Find the variance of .
Part c)
Find the covariance between and .
Part d)
Find the variance of the total number of purchases of a randomly selected customer following the two offers.
You can earn partial credit on this problem.