Suppose that there are 2,000 employed people in a small town. Among them, 500 em- ployees receive the hourly wage of $10 per hour, 1100 employees receive $15 per hour, and 400 employees receive $20 per hour. Let W denote the hourly wage rate of a randomly drawn person from the town's employed population.
(a) What is the support of W? What is the probability distribution of W?
(b) Find the expected wage, E(W).
(c) Find Var(W). [Hint: recall that Var(W) = E(W2) E(W)2=E[(W - E(W))²].