The budgeting process for a midwestern college resulted in expense forecasts for the coming year (in $ millions) of $9, $10, $11, $12, and $13. Because the actual expenses are unknown, the following respective probabilities are assigned: 0.2, 0.3, 0.05, 0.25, and 0.2. (a) Show the probability distribution for the expense forecast. x f(x) 9 10 11 12 13 (b) What is the expected value (in $ millions) of the expense forecast for the coming year? $ million (c) What is the variance of the expense forecast for the coming year?
The budgeting process for a midwestern college resulted in expense forecasts for the coming year (in $ millions) of $9, $10, $11, $12, and $13. Because the actual expenses are unknown, the following respective probabilities are assigned: 0.2, 0.3, 0.05, 0.25, and 0.2. (a) Show the probability distribution for the expense forecast. x f(x) 9 10 11 12 13 (b) What is the expected value (in $ millions) of the expense forecast for the coming year? $ million (c) What is the variance of the expense forecast for the coming year?
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section11.8: Probabilities Of Disjoint And Overlapping Events
Problem 2C
Related questions
Question
The budgeting process for a midwestern college resulted in expense forecasts for the coming year (in $ millions) of $9, $10, $11, $12, and $13. Because the actual expenses are unknown, the following respective probabilities are assigned: 0.2, 0.3, 0.05, 0.25, and 0.2.
(a)
Show the probability distribution for the expense forecast.
| x |
f(x)
|
|---|---|
| 9 | |
| 10 | |
| 11 | |
| 12 | |
| 13 |
(b)
What is the expected value (in $ millions) of the expense forecast for the coming year?
$ million
(c)
What is the variance of the expense forecast for the coming year?
(d)
If income projections for the year are estimated at $12 million, comment on the financial position of the college.
With this estimate, the college can expect a profit (in $ million) of $ million. From the assigned probability, there is chance that expenses will equal $13 million causing the college to run a ---Select--- profit deficit .
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!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL