Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4) For budgeting purposes, each manager in a company must estimate their group's monthly expenses. Manager 1 estimates that her monthly expenses are unifonnly distributed

image text in transcribed
4) For budgeting purposes, each manager in a company must estimate their group's monthly expenses. Manager 1 estimates that her monthly expenses are unifonnly distributed between $5,000 and $45,000. Manager 2 estimates that his monthly expenses are normally distributed with mean $21,000 and standard deviation $3,000. Manager 3 estimates that her monthly expenses follow a discrete distribution with p($15, 000) = 0.2, p($20, 000) = 0.4, p($25, 000) = 0.3, and p($30, 000) = 0.1. a) For each of the three managers, compute the mean and standard deviation of their group's monthly expenses. b) For each of the three managers, estimate the probabilities that their group's monthly expenses are: i) between $17,000 and $24,000, ii) higher than $22,000, iii) below $18,000, and iv) exactly $25,000. c) The company wants to budget enough for each group so that the probability of expenses being over budget is at most 15%. How much should the company budget for each manager

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Calculus

Authors: Dale Varberg, Edwin J. Purcell, Steven E. Rigdon

9th edition

131429248, 978-0131429246

More Books

Students also viewed these Mathematics questions