Question
The Brisbane City Committee has started a new metro program to replace the existing bus network. They estimate that if the metro program goes excellently
The Brisbane City Committee has started a new metro program to replace the existing bus network. They estimate that if the metro program goes excellently they can make a profit of $19.4 million per year. If the metro program goes well they can make a profit of $11.3 million per year. Finally, if the metro program goes poorly they can lose $3.8 million per year. The probability that the program goes excellently is 0.60. The probability that the program goes well is 0.27. Calculate the variance of the profit for the metro program (in $ millions2). Give your answer to two decimal places.
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