This table gives the joint probability distribution for two random variables which are the annual sa

Question: This table gives the joint probability distribution for two random variables which are the

annual sales growth (%) from two companies, A and B.

Sales growth for Company A (%)
Sales growth for Company B (%)	-4 +4 +8
	-1 +3 +6	0.15 0.05 0.1 0.1 0.25 0.03 0.05 0.07 0.2

a. Are the 2 variables independent or not? Explain the reason for your answer.

[2 marks] b. Find the expected value and standard deviation of the sales growth of company A and the covariance between the 2 variables. [5 marks]

c. Suppose the level of sales of company A was $200m at the start of the year and for company B, $75m. Define Z as the total sales of the 2 companies combined at the end of the year; then find the mean and variance of Z.

Hint: To save you some calculation, you are told that the variance of B is 7.6224 %2.

[5 marks]

Price: $2.99

Answer: The solution file consists of 4 pages
Solution Format: Word Document

This table gives the joint probability distribution for two random variables which are the annual sa

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