# Question

The file S04_31.xlsx contains the joint probability distribution of price P per unit and demand D for a particular product in the coming quarter.

a. Are P and D independent random variables? Explain your answer.

b. If P and D are not independent random variables, which joint probabilities result in the same marginal probabilities for P and D as given in the file but make P and D independent of each other?

a. Are P and D independent random variables? Explain your answer.

b. If P and D are not independent random variables, which joint probabilities result in the same marginal probabilities for P and D as given in the file but make P and D independent of each other?

## Answer to relevant Questions

You know that in one year you are going to buy a house. The annual interest rate for fixed-rate 30-year mortgages is currently 6.00%, and the price of the type of house you are considering is $120,000. However, things may ...Consider a financial services salesperson whose annual salary consists of both a fixed portion of $25,000 and a variable portion that is a commission based on her sales performance. In particular, she estimates that her ...A manufacturing company constructs a 1-cm assembly by snapping together four parts that average 0.25 cm in length. The company would like the standard deviation of the length of the assembly to be 0.01 cm. Its engineer, ...Consider the probability distribution of the weekly demand for copier paper (in hundreds of reams) used in a corporation’s duplicating center, as shown in the file S04_58.xlsx.a. Use simulation to generate 500 values of ...The return on a portfolio during a period is defined by PVend – Pvbeg / PVbegWhere PVbeg is the portfolio value at the beginning of a period and PVend is the portfolio value at the end of the period. Suppose there are two ...Post your question

0