Calculation of Variance
To calculate the variance of a discrete random variable, we use the formula:
Var(Y)=E[Y2]β(E[Y])2
Step 1: Calculate E[Y] (Expected Value)
E[Y]=βyβ
P(Y=y)=(0Γ0.3)+(1Γ0.6)+(2Γ0.1)=0+0.6+0.2=0.8
Step 2: Calculate E[YΒ²]
E[Y2]=βy2β
P(Y=y)=(02Γ0.3)+(12Γ0.6)+(22Γ0.1)=(0Γ0.3)+(1Γ0.6)+(4Γ0.1)=0+0.6+0.4=1.0
Step 3: Calculate Variance
Var(Y)=E[Y2]β(E[Y])2=1.0β(0.8)2=1.0β0.64=0.36
Therefore, the variance of Y is 0.36, which corresponds to option B.