Question
Based on its analysis of the future demand for its products, the financial department at company A has determined that there is a 0.17 probability
Based on its analysis of the future demand for its products, the
financial department at company A has determined that there is a 0.17 probability
that the company will lose RM1.2 million during the next year, a 0.21 probability
that it will lose RM0.7 million, a 0.37 probability that it will make a profit of RM0.9
million, and a 0.25 probability that it will make a profit of RM2.3 million.
a) Let X be a random variable that denotes the profit earned by this company
during the next year. Write the probability distribution of X.
b) Find the mean and standard deviation of the probability distribution of part a.
Give a brief interpretation of the value of the mean.
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