Annual profit (P) is the product of total annual sales (S) and profit per unit sold (X) that is, P X middot S It is desired to know the probability distribution of the random variable P when X and Shave the following assumed probability mass functions (X and S are independent) What are the mean, va...

EX 005 1045 2030 3030 165 ES 5040 6020 8040 64 EP ...

Annual profit (P) is the product of total annual sales (S) and profit per unit sold (X);

Question:

Annual profit (P) is the product of total annual sales (S) and profit per unit sold (X); that is, P = X·S. It is desired to know the probability of the random variable P when X and Shave the following assumed probability mass functions (X and S are independent):

X (Unit Profit) S (Annual Sales) Value Probability Value Probability 0.05 5 0.4 1 0.45 6. 0.2 0.30 0.4 3 0.20

What are the mean, variance, and standard deviation of the probability distribution for annual profit, P?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...

Fantastic news! We've Found the answer you've been seeking!