Suppose that a company produces three different products. The sales for each product are independent of the sales for the others. The information for these products is given below:
|
Product
A
|
Price ($)
3.50
|
Expected UnitSates
2000
|
Variance of Unit Sales
1000
|
|
B
|
2.00
|
10,000
|
6400
|
|
C
|
1.87
|
8500
|
1150
|
a. What are the expected revenue and variance of the revenue from Product A alone?
b. What are the company's overall expected revenue and variance of its revenue?