Using the Information in Figure 2

question 18

Essay

Using the information in Figure 2.6 and the average composition of coal
(lignite, sub-bituminous/bituminous and anthracite) in the United States, calculate the mass of the coal used annually. Use the average energy content for sub-bituminous/bituminous coal.

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Definitions:

Variance

In statistics, variance is a measure of how far a set of numbers is spread out from their average value. It's key in assessing variability and risk.

Risk Premium

The additional return expected by an investor for taking on a higher level of risk.

Risky Asset

An asset that has a significant degree of uncertainty in its returns, often leading to variability in its investment outcomes.

Normal Distribution

A statistical function that represents the distribution of many types of data; it’s symmetric and describes data that clusters around a mean or average.