Answered step by step
Verified Expert Solution
Question
1 Approved Answer
3. [NOT EXCEL] Suppose internal analysis shows that your company's 2021 profit [in million dollars) has the cumulative distribution function as shown: x -3.5 -1
3. [NOT EXCEL] Suppose internal analysis shows that your company's 2021 profit [in million dollars) has the cumulative distribution function as shown: x -3.5 -1 0 1.2 2.5 F[x)=P[sz) .015 0.13 0.36 0.75 1 [a] [1 mark] What is the probability that your company will break even in 202 1? [b] [2 marks] What is the expected profit for your company in 2021? (c) [3 marks] What is the variance of the 2021 profit? [d] [2 marks] Suppose your 2021 bonus is 1% of its expected profit in excess of $500,000. That is, if your company is expected to make less than $500,000, you don't get any bonus. If the company makes $700,000, your bonus will be 1% of $200,000 which is $2,000. How much will your bonus be? [e] [2 marks] A larger company ABC has the same prot m prole with Y = 5X + 2. What are the Expected prot and variance of ABC
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started