obability distribution

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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: 0.3, 0.2, 0.25, 0.05, and 0.2.
(a) Show the probability distribution for the expense forecast.
f(x)
0.3
10
0.2
11
0.25
12
0.05
13
0.2
(b) What is the expected value (in $ millions) of the expense forecast for the coming year?
$ 10.65
million
(c) What is the variance of the expense forecast for the coming year?
2.1275
(d) If income projections for the year are estimated at $12 million, comment on the financial position of the
college.
With this estimate, the college can expect a profit (in $ million) of $
X million. From
the assigned probability, there is chance that expenses will equal $13 million causing the college to run a
deficit
Transcribed Image Text: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: 0.3, 0.2, 0.25, 0.05, and 0.2. (a) Show the probability distribution for the expense forecast. f(x) 0.3 10 0.2 11 0.25 12 0.05 13 0.2 (b) What is the expected value (in $ millions) of the expense forecast for the coming year? $ 10.65 million (c) What is the variance of the expense forecast for the coming year? 2.1275 (d) If income projections for the year are estimated at $12 million, comment on the financial position of the college. With this estimate, the college can expect a profit (in $ million) of $ X million. From the assigned probability, there is chance that expenses will equal $13 million causing the college to run a deficit
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