Let X represent the number of policies sold by an agent in a day. The moment generating function of X is M(t) = 0.45 e^t + 0.35 e^{2t} + 0.15 e^{3t} + 0.05 e^{4t} Calculate the variance of X. The profit for a new product is given by : Z=3X-Y-5 X and Y are independent random variables with Var(X) = 1 and Var(Y) = 2. Find Var(Z)
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We know that the variance can be calculated using the formula: Var(X) = E(X^2) - (E(X))^2 Show more…
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