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You are a category manager at one of the fastest growing e-retailers in the country. You earn a fixed annual performance bonus of INR 200000
You are a category manager at one of the fastest growing e-retailers in the country. You earn a fixed annual performance bonus of INR 200000 if your category makes a positive annual profit and nothing otherwise. Suppose historical records show that the annual profits of the category are normally distributed with mean INR 40 million and standard deviation INR 30 million, what is the standard deviation of your annual bonus?
a.
0
b.
INR 27.5 million
c.
INR 0.098 million
d.
INR 0.057 million
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