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.© BrainMass Inc. brainmass.com June 3, 2020, 10:17 pm ad1c9bdddf
The solution determines the expected value of a random variable using a real life problem.