On Any Given Day,a Salesman Can Earn $0 with a 20

question 33

Essay

On any given day,a salesman can earn $0 with a 20% probability,$100 with a 40% probability,or $300 with a 20% probability.Calculate the expected value and variance of his earnings,and interpret.

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Definitions:

Demand for Capital

The desire for acquiring physical assets, equipment, or financial assets to expand business operations or investments, influenced by the expected profit and cost of borrowing.

Rental Price

The cost of using or occupying property or equipment for a specified period.

Average Productivity

The output produced per unit of input, such as labor or capital, on average.

Total Output

The total quantity of goods and services produced in an economy over a given period of time.