# Question: A farmer has 100 lb of apples and 50 lb

A farmer has 100 lb of apples and 50 lb of potatoes for sale. The market price for apples (per pound) each day is a random variable with a mean of 0.5 dollars and a standard deviation of 0.2 dollars. Similarly, for a pound of potatoes, the mean price is 0.3 dollars and the standard deviation is 0.1 dollars. It also costs him 2 dollars to bring all the apples and potatoes to the market. The market is busy with eager shoppers, so we can assume that he’ll be able to sell all of each type of produce at that day’s price.

a) Define your random variables, and use them to express the farmer’s net income.

b) Find the mean of the net income.

c) Find the standard deviation of the net income.

d) Do you need to make any assumptions in calculating the mean? How about the standard deviation?

a) Define your random variables, and use them to express the farmer’s net income.

b) Find the mean of the net income.

c) Find the standard deviation of the net income.

d) Do you need to make any assumptions in calculating the mean? How about the standard deviation?

**View Solution:**## Answer to relevant Questions

Mary is deciding whether to book the cheaper flight home college after her final exams, but she’s unsure when her last exam will be. She thinks there is only a 20% chance that the exam will be scheduled after the last day ...Can we use probability models based on Bernoulli trials to investigate the following situations? Explain. a) Each week a doctor rolls a single die to determine which of his six office staff members gets the preferred parking ...A manufacturer of game controllers is concerned that their controller may be difficult for left-handed users. They set out to find lefties to test. About 13 % of the population is left-handed. If they select a sample of five ...Suppose we choose 12 people instead of the 5 chosen in Exercise 57 a) Find the mean and standard deviation of the number of right-handers in the group. b) What’s the probability that they’re not all right- handed? c) ...For the IQ test administered by human resources and discussed in Exercise 24, what cutoff value would separate the a) Lowest 0.15% of all applicants? b) Lowest 16%? c) Middle 95%? d) Highest 2.5%?Post your question