Mummy Brown is a type of dye that was made as a combination of pitch, dried...

Mummy Brown is a type of dye that was made as a combination of pitch, dried tree sap, and dead Egyptian Mummies. Since the number of new mummies has gone drastically down in the past century, this has become quite a rare dye. You have come across a dealer who is willing to sell you Mummy Brown. The dealer sells Mummy Brown in containers of two di↵erent sizes. One container gives you an expected value of 0.56kg with a standard deviation of 0.03kg. The other container gives you 1.69kg with a standard deviation of 0.12kg.

A. You buy 3 units of container 1. What is the expected value and standard deviation of the amount of dye you would expect to get?

B. You buy one unit of the second container. What is the expected value and standard deviation of the amount of dye you would expect to get?

C. Lets say purchases in the previous 2 questions costs the same. Which is a better deal? (Ex- plain using the previous questions)

D. The dealer says he will take the exact amount of dye in one of the first containers and the multiply that amount of 3. What is the expected value and variance of this quantity?

E. Lets say this also costs the same as before. Which is a better deal? (Explain using the previous questions)

Expert Solution

orchestra answered 2 years ago

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