A Random Variable X Is Normally Distributed with Mean

question 50

Multiple Choice

A random variable X is Normally distributed with mean = 75 and = 8.Let Y be a second Normally distributed random variable with mean = 70 and = 12.It is also known that X and Y are independent of one another.Let W be a random variable that is the difference between X and Y (i.e. ,W = X - Y) .What can be said about the distribution of W?

• A)W is N(0,20)
• B)W is N(5,20)
• C)W is N(5,-4)
• D)W is N(5,14.4)
• E)W is N(0,14.4)

Understand the demand and supply dynamics in markets and their impact on pricing and quantity.

Analyze how production functions and demand curves determine profit-maximizing output levels in monopolistic markets.

Explain the effects of supply and demand shifts on market equilibrium.

Understand the concept of Cournot duopoly and how firms' output decisions affect market equilibrium.

---

Definitions:

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including materials and labor.

Net Income

The total earnings or profit of a company after subtracting all expenses, taxes, and costs from its total revenue.

Overstatement

A situation where figures or values are recorded in the financial statements higher than the actual or true values.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, after all purchases and sales have been accounted for.