The monthly wholesale price and quantity sold of fresh squeezed orange juice during the winter months by
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The monthly wholesale price and quantity sold of fresh squeezed orange juice during the winter months by a small Florida growers' cooperative is represented by the following bivariate probability density function:
\(F(p, q)=.01 p e^{-.01 p q} I_{[1.50,2.50]}(p) I_{[0, \infty)}(q)\) where \(p\) is measured in dollars per gallon and \(q\) is measured in 1,000 's of gallons.
(a) Derive the probability density function of total revenue, \(R=P Q\).
(b) What is the expected value of total monthly revenue?
(c) What is the probability that total monthly revenue exceeds \(\$ 100,000\) ?
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Related Book For
Mathematical Statistics For Economics And Business
ISBN: 9781461450221
2nd Edition
Authors: Ron C.Mittelhammer
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