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How to find the expected value

Suppose that a company produces three different products. The sales for each product are independent of the sales for the others.

Product Price Expected Unit sales Variance of Unit Sales
A $3.50 2000 1000
B $2.00 10000 6400
C $1.87 8500 1150

1. What are the expected revenue and variance of the revenue from Product A alone?

2. What are the company's overall expected revenue and variance of its revenue?

Solution Summary

The solution contains detailed explanation of finding the expected value if a distribution is given.