EXPLORING ECONOMICS
EXPLORING ECONOMICS
8th Edition
ISBN: 2818000015614
Author: Sexton
Publisher: SAGE
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Chapter 11, Problem 19P
To determine

To explain:

The reason behind an increase in profit is noticed if more machines are added and production is increased. The assumption of Mrs. B about the current output range should be explained.

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An actuary analyzes a company’s annual personal auto claims, M and annual commercialauto claims, N . The analysis reveals that V ar(M ) = 1600, V ar(N ) = 900, and thecorrelation between M and N is ρ = 0.64. Compute V ar(M + N ).
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Answer in step by step with explanation. Don't use Ai.
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