THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 217

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
Suppose X and Y are two random variables with E(X) = 1.50,E(Y) = 0.55,E(XY) = 0.80,Var(X) = 0.25,and Var(Y) = 0.2475.
-What is the value of E(2X - 3Y) ?

• A)1.35
• B)-1.00
• C)4.65
• D)1.50

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Definitions:

Expense Account

An account used to track expenses incurred, which are then offset against revenue to determine net profit.

Raw Materials Inventory

The total cost of all the raw materials that are used in production and currently stored by a company.

Materials Received

Refers to the quantity and cost of raw materials received by a company for use in production during a specific period.

Work In Process Inventory

Refers to the cost of unfinished goods in the manufacturing process.