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An analyst studies the turnover of a company over ten years. Let x be the number of years after the first year the analyst looks
An analyst studies the turnover of a company over ten years. Let x be the number of years after the first year the analyst looks at. Y is the turnover in year x and the analyst assumes that the turnover is a normally distributed stochastic variable with expectation E (Y) = ?0 + ?1x and standard deviation ? = 0.1. Based on the observations, the analyst finds that:
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