The parts manager for a large Jeep dealer starts each month with 4 replacement transfer cases on stock. Past experience has indicated that the monthly demand for transfer cases, D, is given by: P(D=0) = .20, P(D=1)=.45, P(D=2) = .25, P(D=3) = .08, and P(D=4) = .02.
What is the variance of the number of transfer cases that will be left in stock at the end of each month? (Round your answer to 2 decimal places).
2.15
0.94
2.53
0.88
2.73