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Airfares. Each year a company must send 3 officials to a meeting in China and 5 officials to a meeting in France. Airline ticket prices vary from time to time, but the company purchases all tickets for a country at the same price. Past experience has shown that tickets to China have a mean price of $1000, with a standard deviation of $150, while the mean airfare to France is $500, with a standard deviation of $100.
a) Define random variables and use them to express the total amount the company will have to spend to send these delegations to the two meetings.
b) Find the mean and standard deviation of this total cost.
c) Find the mean and standard deviation of the difference in price of a ticket to China and a ticket to France.
d) Do you need to make any assumptions in calculating these means? How about the standard deviations?
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