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Q1 (20) Audio Streaming. An audio streaming service offers music and podcasts. Most music is owned by record labels and the streaming service pays a
Q1 (20) Audio Streaming. An audio streaming service offers music and podcasts. Most music is owned by record labels and the streaming service pays a copyright license fee each time a piece of music is streamed. By contrast, the streaming service purchases podcasts outright, paying a flat rate for each edition of the podcast, independent of the number of users that stream it. Forecasts of costs and revenues (from subscriptions and advertising) next year are Normally distributed and are given in the table as a central range within which there is 90% probability. For example, in units of $m, mean value of license fees = (24.5 + 27.2) / 2 = 25.85; P(24.5
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