Solutions Statistics

Russco has three divisions, call them A, B, and C. Monthly sales in each division are normal. The co

Question: Russco has three divisions, call them A, B, and C. Monthly sales in each division are normal. The covariance of A and B is 600. The covariance of B and C is 0. The covariance of A and C is 0. The means and standard deviations for each division are given in the table below.

A		B		C
\[\mu \]	\[\sigma \]	\[\mu \]	\[\sigma \]	\[\mu \]	\[\sigma \]
400	40	300	30	200	20

Total Sales is the sum of departments A, B, and C: $TS=A+B+C$. What is the probability that Total Sales will be greater than $1,000? Put your answer in excel…show all of your “work” in excel in a worksheet called problem #1.

I want this problem answered two ways (A) using formulas and B(using a simulation)

The simulated data is in the spreadsheet named problem #1. Columns A, B, and C are all independent normally distributed random variables, with a mean of 0 and a sigma of 1…for each column.

To solve this problem I suggest you study questions 7, 8, 9, and 10 from Homework #2. Remember the answers for HW #2 are posted.

Price: $2.99

Solution: The solution file consists of 2 pages
Solution Format: Word Document