A consultant is beginning work on three projects. The expected profits from thes

Question

A consultant is beginning work on three projects. The expected profits from these projects are $ 52 thousand, $ 62 thousand, and $ 20 thousand respectively. The associated standard deviations are $ 11 thousand, $ 12 thousand, and $ 4 thousand respectively. Answer the following, rounding your answers to two decimal places. (a) Assuming independence of outcomes, find the mean (in thousands of $) of the consultant's total profits from these three projects. ______ (b) Assuming independence of outcomes, find the standard deviation (in thousands of $) of the consultant's total profits from these three projects. ________

Explanation / Answer

A) mean of total profits = 52 + 62 + 20 = $ 134 thousand

B) standard deviation of total profits = sqrt(110002 + 120002 + 40002) = $16.763 thousand

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