We revisit Exercise 33. Suppose that the number of potential buyers is a Poisson r.v. with a mean of 60,000, and it does not depend on the price of the product. Find the standard deviation of the company’s income.

Exercise 33

A company is going to put a new computer in the market in one year. A company’s analyst presupposes that the future market price for such a computer may assume three values: $900,$1000,$1100 with equal probabilities. The analyst also thinks that on the average, 60,000 people will buy the computer. Make an assumption that will allow the analyst to find the expected value of the company’s income. Find it.