Question
The present worth of an investment project is described by the following equation: PW = 20X + 8XY where X and Y are statistically independent
The present worth of an investment project is described by the following equation:
PW = 20X + 8XY
where X and Y are statistically independent discrete random variables with the following PDFs:
PDF of X
Value Probability
$ 26 0.4
$ 77 0.6
Calculate the mean of the project's PW
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
