Tom and Ray are managers of electronics stores with slightly different pricing strategies for USB drives. In Tom's store, customers pay the same amount, $c,$ for each USB drive. In Ray's store, it is a little more exciting. The customer pays an up-front cost of $\$ 1.00$. Ray charges the same price per USB drive, $c$, but at the register the customer flips a coin. If the coin lands heads up, the customer gets his or her $\$ 1.00$ back, plus another dollar off the total cost of the USB drives purchased.
a. Which of these pricing strategies can be expressed as a deterministic model?
b. Using mathematical notation, specify a model using Tom's pricing strategy that relates $y=$ total cost to $x=$ number of USB drives purchased.
c. Using mathematical notation, specify a model using Ray's pricing strategy that relates $y=$ total cost to $x=$ number of USB drives purchased.
d. Describe the distribution of $e$ for the probabilistic model described above. What is the mean of the distribution of $e ?$ What is the standard deviation of $e ?$