Determining the variance of firm-s profit

Reference no: EM1319423

Q1) Engineering firm bids on contracts for short-term jobs where each job can make profit of $100,000 for firm. Assume the probabilities of getting zero to five such jobs in certain month are given in the table below:

Number of jobs	Probability
0	0.05
1	0.15
2	0.20
3	0.25
4	0.20
5	0.15

a) Determine the expected profit during month for a firm.

b) Determine the variance of firm's profit for the month.

Reference no: EM1319423

Questions Cloud

Probability based on rolling two fair dice : What is the probability of getting a number less than 5 on both?

Transmitting image through raster scan : If we were to transmit this image utilizing the raster scan order, after 15 seconds how many rows of image will the user have received? To what fraction of the image does this correspond?

Rationale and challenges related to sourcing : Describe the supply chain necessary for a tailgate for 20 friends before a big game. Discuss the rationale and challenges related to sourcing from low-cost countries.

Probability of drawing ball from urn : If you draw one ball from the urn what is the probability that it is blue or white?

Determining the variance of firm-s profit : Determine the variance of firm's profit for the month.

Reduce in aggregate demand the price level : During the recession of 2001, despite the reduce in aggregate Demand the price level was essentially stable. That of the following is a reason for this.

Major activities in terms of global sustainability : Identify an organization that appears to have a high commitment to sustainability. What are its major activities in terms of global sustainability?

Developing logic for program : Design the logic for a program which reads in 100 customer records and stores first and last names and total purchases in three parallel arrays.

Make the number in standard notation : Make the number in standard notation

User Account

All Pages