A gas station sells two types of gasoline: regular and premium. Let X be the amount (in
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A gas station sells two types of gasoline: regular and premium. Let X be the amount (in gallons) of regular sold in a day and Y = amount (also in gallons) of premium sold in a day. Regular is priced at $4/gallon and premium at $4.2/gallon. If E(X) = 2000, E(Y) = 500, Var(X) = 2500, Var(Y) = 10000, and Cov(X, Y) = 4500. Therefore, Revenue is R = 4X + 4.2Y. Determine
a) E(R).
b) Var(R).
c) What would happen if we wrongly assume X and Y are independent.
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Related Book For 
Principles Of Managerial Statistics And Data Science
ISBN: 9781119486411
1st Edition
Authors: Roberto Rivera
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