Suppose Var(X) = 36, Var(Y) = 42, and X and Y are independent. What is Var(.25X + .75Y)? Suppose Var(X) = 63, Var(Y) = 87, and X and Y are independent. What is Var(.79X + .21Y)? Suppose that Var(X) = 907.96, Var(X) = 10219.44, and Cov(X,Y) = 2694.59. What is Var(.33X + .67Y)?

Suppose Var(X) = 36, Var(Y) = 42, and X and Y are independent. What is Var(.25X + .75Y)? Suppose Var(X) = 63, Var(Y) = 87, and X and Y are independent. What is Var(.79X + .21Y)? Suppose that Var(X) = 907.96, Var(X) = 10219.44, and Cov(X,Y) = 2694.59. What is Var(.33X + .67Y)?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 1MC

See similar textbooks

Related questions

Q: gnd revenue curve, and cost The dogram at the age shows the demand curve, survet for a monopoled…

A: The income generated by selling one more unit is referred to as marginal revenue, whereas the…

Q: A Company's stock currently pays a dividend of $5 dollars per year and you expect that dividend to…

A: Stock price is given by the formula : - Price = Dividend i - g i = interest rate g = Growth rate…

Q: The following scenario examines markets for factors of production, which include land and labor,…

A: Land and labour are crucial production inputs. Depending on market variables such as supply and…

Q: oral hazard caused by Deposit Insurance Schemes refers to: a. The placing of funds from immoral…

A: When one party tries to protect itself from risk by giving some fee to any other firm, individual,…

Q: b) What is the Dominant strategy of ADM? c) What is the Dominant strategy of Ajinomoto? e) If…

A: Dominant strategy is the strategy which will not change when the opponent hanges it's strategy.…

Q: Suppose the marginal revenue of a perfectly competitive firm is $10 and its marginal cost is $18 for…

A: Price and marginal revenue are always identical in a perfect competition market since the market…

Q: What is br in this equation

A: The investment function shows the relationship between the interest rate and the amount of…

Q: Consider the following demand components: Consumption described as a following: 120 million USD as…

A: The value of the total production of services and goods at a particular period is Gross Domestic…

Q: A profit maximizing firm will hire workers up to the point where marginal factor cost equals the…

A: Marginal Revenue Product of the labor is the additional revenue generated due to employment of an…

Q: Two firms H and L have discrimination coefficients dH and dL, where dH > dL. Briefly explain the…

A: Discrimination refers to charging unequal prices or in other words using different conditions for…

Q: Year 2018 2019 2020 Year Price (Dollars per cupcake) 1 27 2 Cupcakes 4 Quantity (Number of cupcakes)…

A: Real gross domestic product is a macroeconomic measure of the value of economic output adjusted for…

Q: Which of the following statements about the debate over stabilization policy are correct? Check all…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Assume a monopoly market. Draw the average total cost, marginal cost, marginal revenue, and demand…

A: In case of monopoly , Profit is maximized where MR = MC. MR curve and demand curve is downward…

Q: The subprime mortgage crisis of the mid 2000s in the USA was a result of ... a. Increasing…

A: Subprime mortgages refers to the mortgages to borrowers that would not qualify for prime mortgages…

Q: An industry in which average total costs fall as output increases. is a decreasing-output industry.

A: An industry in which average total costs rise as output increases is called an increasing cost…

Q: Consider a consumer with wealth w who consumes two goods, which we shall call goods A and B. Let the…

Q: In the Plantation economy model, the Golden Age exhibited which one of the following…

A: The Plantation Economy Model is defined as a model which is based on the mass production of…

Q: 2. The cash flows for an investment project are listed below. the firm will invest if the present…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A. Use the SR Cost Table below to compute for the values that corresponds to letters a to e. q 0 1 2…

A: Total fixed cost (TFC): Total fixed cost remains the same for all values of q. fixed cost does not…

Q: A monopolized market is characterized by: O Single firm that faces complete market competition. A…

A: A market structure is a system where the buyers and sellers meet to strike a deal regarding the…

Q: Calculate the average total, fixed and marginal costs for a “competitive” firm with the following…

A: We get fixed cost by taking the total cost at q=0 At q=0, TC=10. Hence, fixed cost. FC=10

Q: 5. The Stag Hunt is a famous coordination game where two hunters must work together to hunt a stag…

A: Nash equilibrium is a game theory concept where each player chooses to maximize their outcome and…

Q: C: The Battle for Ritzy Cinema II - this time, it's personnel Patrons at the Ritzy cinema can either…

Q: In the following demand and Cost functions & is selling price and Qis quantity in the Thousand P =…

A: When the total revenue function and total cost function are already given, the profit function is…

Q: the next 6 hours of her free time. She could choose Aisha is considering how to allo between leisure…

A: Consumer A can allocate her time between leisure (L) and to do house chores. Consumer A has 6 hours…

Q: Why is a football game on ESPN a quasi-public good but a game on the NBC, CBS, or ABC is a public…

A: The qualities of both public and private goods can be found in a quasi-public good. Partially…

Q: Skyline Furniture has a beginning inventory of 3 dining tables at a cost of $1,400 each. During the…

A: First In, First Out (abbreviated as FIFO) refers to an asset-management and valuation approach…

Q: Malika's Pizzas is a takeout-only pizza parlor servicing the college campus of Santa Barbara that…

A: Production function shows the relationship between the inputs used and the output produced.…

Q: a) At the optimal output, what price will Do Drop In charge and what will be its output? Price: $…

A: A firm produces at MR = MC to maximize the profit. i.e., At MR = MC, a firm maximizes the profit.…

Q: Discuss the meaning of Zakat, its legitimacy on economic perspective

A: Zakat is a financial term related to Islam that refers to a type of tax that a Muslim person has to…

Q: What happens when aggregate demand Increases? give examples in paragraphs

A: Aggregate demand is the summation of individual demand made in the economy for a given time.…

Q: Some have used the national security argument to suggest that protectionist policies should be used…

A: Protectionist policies will be implemented with a main motive to enhance the economic activity…

Q: An entrepreneur owns a factory with two plants that produce the same skateboards but differ in the…

A: A production function shows the relationship between the output derived using the combination of…

Q: A high-tech material handling system was offered by a supplier to a large automobile manufacturer.…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: EXERCISE 3 If Joe decides to allocate his entire weekly allowance between energy drinks and coffee,…

A: The budget line is a graphical delineation of all potential blends of the two commodities that can…

Q: Engr. Gundran wishes his son to receive 10,813 10 years from now. What amount should he invest if it…

A: Present value is the value of investment in today's dollar. Future value is the value of investment…

Q: A P1000, 6% pays dividend semiannually and will redeemed at 110% on June 21, 2004. It is bought on…

A: Yield to maturity (YTM) refers to a rate of interest that will be applied to discount the bond's…

Q: The degram at the sigh shows the demand curve, egin revenue curve, and cost curvat for a sonopoled…

A: In Monopoly , The profit is maximized where MR = MC MR is the Marginal Revenue MC is the marginal…

Q: Solve the following problems. Draw corresponding flow chart. A certain service can be performed…

Q: Maximizing which of the following can contribute to sustainable development? O a. none of the…

A: The concept of sustainable development refers to an approach to economic planning that aims to…

Q: Consider the following supply and demand function, QD = 65 − 2P and QS = 1.5P − 5, and assume a…

A: Demand function: Demand function shows the maximum price the consumers are willing to pay to…

Q: Price Qd Qs1 Qs2 $20 0 10 8 $18 1 9 7 $15 2.5 7.5 5.5 $12 4 6 4 $10 5 5 3 $5…

A: An externality is a benefit or expense that an individual experiences as a result of the creation or…

Q: B: Theory: Cost Minimisation (isocost-lines and production) Note: In the class, I will put capital…

Q: A project capitalized for P 50,000 in depreciable assets will earn a uniform annual income of P…

A: Present worth will be calculated as net present value of revenue minus net present value of cost.…

Q: Suppose that the nation of Costa Rica produces Coffee and Bananas. Below are the possible…

A: Opportunity cost is the value of an economic activity that is sacrificed to perform another economic…

Q: BE11-7 Holt Company purchased a computer for $8,000 on January 1, 2013. Straight-line depreciation…

A: Cost of Computer = 8000 n = 5 Years Salvage value = 1000

Q: In a market with a Duopoly, if Market Demand is P=300-Q find the Cournot reaction curves and the…

A: When two firms jointly control all or almost all of the usual market for a certain good or service,…

Q: Assume that the level of autonomous consumption in an economy equals 400, the level of planned…

A: Given information The autonomous consumption is 400 Planned investment (I) is 200 MPC = 0.6…

Q: Given the following aggregate production function: Y = K0.25 (AL) 0.75, where technology A grows at…

A: Solow's growth model provides a stable level in the investment and savings market. The model…

Q: a) Suppose that in the production of computer software, the marginal rate of technical substitution…

A: Since you have uploaded multiple questions, we are solving only the first question as per our…

Question

Suppose Var(X) = 36, Var(Y) = 42, and X and Y are independent. What is Var(.25X + .75Y)?

Suppose Var(X) = 63, Var(Y) = 87, and X and Y are independent. What is Var(.79X + .21Y)?

Suppose that Var(X) = 907.96, Var(X) = 10219.44, and Cov(X,Y) = 2694.59. What is Var(.33X + .67Y)?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Suppose Var(X) = 36, Var(Y) = 42, and X and Y are independent. What is Var(.25X + .75Y)?

VIEW

Suppose Var(X) = 63, Var(Y) = 87, and X and Y are independent. What is Var(.79X + .21Y)?

VIEW

Suppose that Var(X) = 907.96, Var(X) = 10219.44, and Cov(X,Y) = 2694.59. What is Var(.33X + .67Y)?

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose that Var(X) = 661.1, Var(X) = 8021.53, and Cov(X,Y) = 1922.11. What is Var(.64X + .36Y)? Suppose that Var(X) = 869.03, Var(X) = 7850.84, and Cov(X,Y) = 2238.69. What is Var(.67X + .33Y)?
In the Markowitz portfolio optimization model defined in equations (8.10) through (8.19) in the text, the decision variables represent the percentage of the portfolio invested in each of the mutual funds. For example, FS = 0.25 in the solution means that 25% of the money in the portfolio is invested in the foreign stock mutual fund. It is possible to define the decision variables to represent the actual dollar amount invested in each mutual fund or stock. Redefine the decision variables so that now each variable represents the dollar amount invested in the mutual fund. Assume an investor has $50,000 to invest and wants to minimize the variance of his or her portfolio subject to a constraint that the portfolio returns a minimum of 10%. (a) Reformulate the model given by (8.10) through (8.19) based on the new definition of the decision variables. min ((R1 − R)2 + (R2 − R)2 + (R3 − R)2 + (R4 − R)2 + (R5 − R)2) s.t. R1 =…
A drug company is considering investing $100 million today to bring a weight loss pill to the market. At the end of one year, the firm will know the payoff; there is a 0.50 probability that the pill will sell at a high price and generate $37 million per year of profit forever and a 0.50 probability that the pill will sell at a low price and generate $I million per year of profit forever. The interest rate is 10%. Suppose the firm decides to wait one year to determine whether the pill will sell at a high or low price. The firm will not invest if it learns that the pill will sell at a low price. What is the net present value of waiting one year to make the investment?O $88 millionO$122.72 millionO $201.22 millionO $64.5 million
Pick an answer for Q3 and Q9.
A manufacturer of a new patented product has found that he can sell 70 units a week to the customer if the price is $48. In error, the price was recently advertised at $78 and as a result, only 40 units were sold in a week. The manufacturers fixed costs of production are $1,710 a week and variable costs are $9 per unit. You are required to: d. Assuming a sudden change in trading conditions resulting in a 20% reduction in demand at all price levels, to find the equation of the new demand function and to recommend how the manufacturer should respond.
b.A clothing manufacturer makes trousers, skirts and blouses. Each trouser requires 20 minutes of cutting time, 60 minutes of sewing time and 5 minutes of packaging time. Each skirt requires 15 minutes of cutting time, 30 minutes of sewing time and 12 minutes of packaging time. Each blouse requires 10 minutes of cutting time, 24 minutes of sewing time and 6 minutes of packaging time. The amount of time available for cutting, sewing and packaging is 115 hours, 280 hours and 65 hours respectively. Using either the Inverse Method or the Cramer’s Rule, determine how many of each type of clothing should be made to use all available labor hours?
The branch manager of an international bank in Kuala Lumpur, Malaysia, has received a memorandum from senior executives at the head office of the bank instructing the manager to ensure that the average queuing time for customers waiting to see a cashier is no more than 5 minutes. Since receiving this directive, the manager has been informally checking queuing times and is very confident that the average time customers spend waiting to see a cashier is currently 5 minutes or less. You have now been brought in to undertake an audit of queuing times to check that they are in accordance with the senior executives’ directive. State the null and alternative hypotheses you will be using in this instance.
Nesto hypermarket sells three brands (A, B, and C) of laptop computers. The monthly sales of the three brands are: Brand A = 15 units; Brand B = 9 units and Brand C = 12 units. The unit price of brand A is R.O. 300; brand B is R.O. 280 and brand C is R.O. 200. The cost to the Stores is 280 R.O. for brand A; 260 R.O. for brand B, and 180 R.O for brand C. Let Q = ; P =; and C = Using the above matrices, calculate the following: Calculate total revenue Calculate total cost Calculate the monthly profit
A factory manufactures both toy boats and toy trucks. It costs $125 to make a toy boat and $175 to make a toy truck. The factory only has $3,000 available to put into their production. If B is the number of boats made, and T is the number of trucks made, which of the following will be a Lagrangian equation if you are trying to maximise profits? a.120 + 5B + 7T = 0 b.120 - 5B - 7T = 0 c.0 = 120 - 5B + 7T d.0 = -120 - 5B - 7T e.120 + 5B - 7T = 0
Solve using definite integrals.
n people guess an integer between 1 and 100, and the winner is the player whose guess is closest to the mean of the guesses + 1 (ties broken randomly). Which of the following is an equilibrium: a) All announce 1. b) All announce 50. c) All announce 75. d) All announce 100
You are taking a multiple-choice test that awards you one point for a correct answer and penalizes you 0.25 points for an incorrect answer. If you have to make a random guess and there are five possible answers, what is the expected value of guessing? Group of answer choices -0.25. 0.25. 0.5. 1. 0.