Question

An oil producing company is interested in predicting it profit next year which is equal to YX where Y= profit per gallon produced next year (in Dollars) and X-number of gallons produced next year. Suppose (XX) E R (0,00) has joint density nem where u(z)-500,000,000/4, and m and σ > 0 are real parametes. Find the expected profit in Dollars.

Answer 1

Solution Gi 500, 000, 0oo/x To fnd the etpectet Proftt in Dolloxs. | The expected profit ウ E0%): 2TT co

Heve x is lognevmal Yandem varable. E(yx) : 500,000, ooo