Question

The budgeting process for a midwestern college resulted in expense forecasts for the coming year (in $ millions) of $9, $10, $11, $12, and $13. Because the actual expenses are unknown, the following respective probabilities are assigned: 0.28, 0.2, 0.2, 0.13, and 0.19. Show the probability distribution for the expense forecast. x f(x) 9 10 11 12 13 What is the expected value of the expense forecast for the coming year (to 2 decimals)? What is the variance of the expense forecast for the coming year (to 2 decimals)? If income projections for the year are estimated at $12 million, how much profit does the college expect to make (report your answer in millions of dollars, to 2 decimals)?

Answer 1

1 0 28 12 12 013 X ' ' 2s)r(10.xo, 2) t(11-X 0,2)t(12x o. 13)t(13x o ' רו d)