A collector is selling a quantity of action figures at an online auction. He has 17 cowboy figures. In recent auctions, the mean selling price of similar figures has been $12.41, with a standard deviation of $1.41. He also has 11 Indian figures which have had a mean selling price of $10.46, with a standard deviation of $0.78. His insertion fee will be $0.50 on each item, and the closing fee will be 8.75% of the selling price. He assumes all will sell without having to be relisted. Complete parts a through d.

a) Define your random variables, and use them to create a random variable for the collector's net revenue.

Let Xi be the price of ith cowboy figure sold Yi be the price of ith Indian figure sold. Choose the correct net revenue below.

Net revenue equals=

b)Find the mean(expectedvalue) of the net revenue.

E(netrevenue)= (round to two decimal places as needed)

c)Find the standard deviation of the net revenue.

SD(net

revenue)equals=

(Round to two decimal places as needed.)

d) Do you have to assume independence for the sales at the online auction? Explain.

A. Yes, independence is required, but only when there are fewer than 30 data values.

B. Yes, independence must be assumed in order to compute the standard deviation.

C. No. The mean and standard deviation can be found without having to assume independence.