3 Distribution of demand and price Demand 2000 2500 3000 3500 $30 0.025 0.05 0.05 0.175 Price $35 0.045 0.06 0.095 0.05 $40 0.075 0.1 0.05 0.025 $45 0.1 0.05 0.025 0.025 Expected price in next quarter = Expected demand in next quarter = P(Price>$36.75) = P(Demand < 2762.5) = P(Demand > 2500, given that Price <$40) = P(Demand <3500, given that Price >$30) = Covariance =