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H2 Maths Notes
H2 Maths 6.2 - Linear Transformation: E(aX + b) and Var(aX + b)
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What you will learn
X is Bin(8, 0.4); total payout T = 200 X + 150 (200 per success plus a 150 stipend).
Binomial shortcuts: E(X) = n p = 3.2 and Var(X) = n p (1 - p) = 1.92.
E(T) = 200 E(X) + 150 = 640 + 150 = 790 dollars.
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