You decide to move out of your college’s dorms and get an apartment, and you want to discuss the budget with your roommate. You know that your monthly grocery bill G will depend on a number of factors, such as whether you are too busy to cook, whether you invite guests for meals frequently, how many special holiday meals you will cook, etc. In particular, G will have an approximate normal distribution with a variance of 2500 and a mean:
Where M is the number of meals to which you invite guests, and E[M]=8. B is a measure for how busy you are and assume it is U[0,1]. H is a variable that takes on the value 1 for holiday months of November, December, and January and 0 otherwise.
Question : For a month choosen at random what is E[G]?
c) 300+ 10E[M]-100E[B]+50E[H]
d) 312.5 + 10E[M]-100E[B]
Note : More than 1 correct options.