[Solution] - Find the standard deviation of the estimated profit z= 2000X + 3500Y. Answer -- Information -- The problem deals with probability of selling
Question: - Find the standard deviation of the estimated profit z= 2000X + 3500Y.
Answer --
Information --
The problem deals with probability of selling n units, for instance, selling 300 y units has probability 0.4. In previous problems, the standard deviation was derived using the mean estimated profits of units X (5000 units) and y (445 units). Each united corresponded to a specific probability so it was just a matter of the equation of variance of a discrete random variable, for instance selling 1000 x units is (1,000-5000)^2*(0.1). But, selling 2000 x units doesn't correspond to a given probability (only probability for 1000, 3000, and 5000 units), so I don't understand how they got the answer, or what it means. What is a standard deviation of an estimated profit?
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