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    Expected Value of a Random Variable

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    Suppose you want to sell your house and you have decided to accept the first offer exceeding M dollars, say. Assume that the offers are i.i.d. with common distribution F. Find the expected number of offers received before selling the house.

    I do not really know how to start the problem. I expect that I have to use either the Poisson or Exponential Distribution but so far trying this has not lead to anything.

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    Solution Summary

    The solution determines the expected value of a random variable using a real life problem.