
C)
When we subtract one random variable from other is an example of something random happening, and when that happens, the uncertainity increases whether we add to the pile or subtract from it. Here we have to find the variance, i.e. the variability in the amount of ice cream left in the box when we scoop out one scoop of ice cream. The amount of variability i.e. variance would increase and cannot decrease when we scoop out one scoop of ice cream as the uncertainity has increased due to the combination of the two random variables.
Also if individual random variable variances were to subtracted, overall variance could become negative which is not possible.
2.42 Scooping ice cream. Ice cream usually comes in 1.5 quart boxes (48 fluid ounces), and...
You go to an ice cream shop and notice that you can get a cone or a banana split. The cone is filled with ice cream and then you get a half sphere on top, whose diameter is the same as the diameter of the cone. The banana split comes with 3 full spheres of ice cream. If the spheres all come from the same ice cream scoop and the height of the cone is 3 times its diameter, what...
The amount of cereal that can be poured into a small bowl is normally distributed with a mean of 1.5 ounces and a standard deviation of 0.3 ounces. For a large bowl the amount poured is normally distributed a mean of 2.5 ounces with a standard deviation of 0.4 ounces. You open a new box of cereal and pour one large and one small bowl. Let Y be the difference of the amount of cereal in the two bowls (Large-S...
The price to earnings ratio (P/E) is an important tool in financial work. A random sample of 14 large U.S. banks (J. P. Morgan, Bank of America, and others) gave the following P/E ratios.† 24 16 22 14 12 13 17 22 15 19 23 13 11 18 The sample mean is x ≈ 17.1. Generally speaking, a low P/E ratio indicates a "value" or bargain stock. Suppose a recent copy of a magazine indicated that the P/E ratio of...