Compute the mean and variance of the total accumnulated earn

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Suppose that an uncertain lump-sum P is expected shortly after termination of a project. In the current uncertain market conditions, it appears that the earning interest rate (i) will fluctuate for the foreseeable futute. It is thought, however, that both the lump sum and the interest rate are uniformly distributed but each has a unique range.

P: uniform ($1,000, $2,000)

i: uniform (9%, 11%)

Assuming that this uncertain sum is to be reinvested at an interest rate of i over the next 3 years, compute the mean and variance of the total accumnulated earnings.

Reference no: EM132019628

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