The budgeting process for the UCONN School of Business resulted in expense toretasted for the coming year in millions) of \$9,\$10,\$11,\$12,\$13 Because the actual expenses are unknown, the following respective probabilities are assigned: 3, .2, .25, .05 and 2 a. What is the expected value of the expense forecast for the coming year? b. What is the variance of the expense forecast for the coming year ? c. If income projections for the coming year are estimated at 12 , comment on the financial position of the School of Business
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
The budgeting process for the UCONN School of Business resulted in expense toretasted for the coming year in millions) of \$9,\$10,\$11,\$12,\$13 Because the actual expenses are unknown, the following respective probabilities are assigned: 3, .2, .25, .05 and 2
a. What is the
b. What is the variance of the expense forecast for the coming year ?
c. If income projections for the coming year are estimated at 12 , comment on the financial position of the School of Business
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