An online (Chron. com) article for the Houston Chronicle discussed how a probability distribution can be a

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An online (Chron. com) article for the Houston Chronicle discussed how a probability distribution can be a useful tool in evaluating risk. The example presented involved a new business line developed by a company. The company needs to generate at least $500,000 in revenue in order to break even. A probability distribution for revenue determined that the probability that the company breaks even is .90.

a. Assume that revenue, x, has a uniform distribution and cannot be negative. Find the mean of x.

b. Assume that revenue, x, has an exponential distribution and cannot be negative. Find the mean of x.

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Statistics For Business And Economics

ISBN: 9780136855354

14th Edition

Authors: James T. McClave, P. George Benson, Terry T Sincich

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