Question
engineering economics
A. what is the ted value of A seers revene? 130 pts) 1,333 & What is the variance of Alseefs revenue? (10 pts a VIR) 38,012
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Answer #1

A) ANSWER: D

E(R)= Revenue in a particular state/event*probability of that event

=(80,000*0.15)+ (93,000*0.35)+ (101,000*0.30)= $74,850

B) ANSWER: B

Var(R)= Revenue^2* probability of that event- E(R)^2

=[(80,000^2*0.15)+(93,000^2*0.35)+(101,000^2*0.30)]- [74,850]^2

=1,444,927,500

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