Suppose that revenue has the form

where \(h\) can be chosen and \(x\) and \(y\) are random variables. The distribution of \(x\) and \(y\) is symmetric about \((0,0)\); that is, \(-x,-y\) has the same distribution as \(x, y\). Show that the choice of \(h\) that minimizes the variance of \(R\) is

Transcribed Image Text:

R=Axy+Bx-hy,