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Mathematics, 14.01.2020 22:31 timothycarter342

Picard partners is planning a major investment. the amount of profit x is uncertain but a probabilistic estimate gives the following distribution (in millions of dollars):

profit 1 1.5 2 4 10
probability 0.1 0.2 0.4 0.2 0.1

a) find the mean profit μxand the standard deviation of the profit.(b) picard partners owes its source of capital a fee of $200,000 plus 10% of the profits x. so the firm actually retains y = 0.9x - 0.2 from the investment. find the mean and standard deviation of y.

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