A company is introducing a new product. It has 100 retail locations each independently agreeing to offer it with probability 0.2. The amount of sales of the new product in each location is a normal random variable with average 100 and standard deviation 15. Calculate the expectation of the total sales of the new product. Calculate the variance of the total sales of the new product

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A company is introducing a new product. It has 100 retail locations each independently agreeing to offer it with probability 0.2. The amount of sales of the new product in each location is a normal random variable with average 100 and standard deviation 15. Calculate the expectation of the total sales of the new product. Calculate the variance of the total sales of the new product.
Expert Solution
Step 1

Given that:

Population mean, μ=100

Population standard deviation, σ=15

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