Imagine that we roll two fair six-sided dice (i.e., all six sides have equal probability). Let X1 and X2 be the random variables representing these outcomes. Now, imagine we take one of the dice rolls, say X1, and add a (possibly negative) constant c to the result. If this becomes less than zero, then we set it to zero; denote this by
I'm in need of some help regarding this question of mine. I did not quite understand the question especially the equation that is denoted. Could anyone please explain to me as I'm having issues understanding the question.
Since $X_1$ is positive so is always $X_1+1$ therefore $$(X_1+1)_+=X_1+1$$and we have $$E\{(X_1+1)_+\}=\dfrac{2+3+4+5+6+7}{6}=4.5$$