If You Add Several Normally Distributed Random Numbers,the Result Is

question 30

Essay

If you add several normally distributed random numbers,the result is normally distributed,where the mean of the sum is the sum of the individual means,and the variance of the sum is the sum of the individual variances.This result is difficult to prove mathematically,but it is easy to demonstrate with simulation.To do so,run a simulation where you add three normally distributed random numbers,each with mean 100 and standard deviation 10.Your single output variable should be the sum of these three numbers.Verify with @RISK that the distribution of this output is approximately normal with mean 300 and variance 300 (hence,standard deviation = 17.32).

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Unit Cost Data

Information related to the cost required to produce one unit of a product or service, including materials, labor, and overhead expenses.

Single-Price Monopoly

A monopolistic market structure where the monopolist charges the same price for every unit of the product sold to every consumer.

Economically Inefficient

A situation where resources are not used in the most productive way, leading to wasted potential output or outcomes.