Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. basic math
  3. suppose that the fuel price at a specific gas stat

Suppose that the fuel price at a specific gas station consists of : A fixed government fuel...

90.2K

Verified Solution

Question

Basic Math

Suppose that the fuel price at a specific gas station consistsof :

A fixed government fuel excise of $0.416/L

Wholesale costs for supplier, which average $0.712/L, with avariance of 0.10.

Retail costs (including profit margin) at an average of$0.212/L, with a variance of 0.0012.

a) Find the average total fuel cost on any given day

b) Given that wholesale and retail costs have a correlation of0.7, find the variance in total fuel price

c) Assuming that the total fuel price is normally distributed,what is the probability of fuel being priced at less than $1/L onany given day?

Answer & Explanation Solved by verified expert
4.4 Ratings (790 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

Question #1. The lateral surface area, S, of a cone is given by: ? = ?*SQRT(?^2 +...

Psychology
1.2K views

What generally occurred in the third phase of decolonization, according to Fabian Klose?

Physics
1.2K views

A charge of 40 pC is distributed on an isolated spherical conductor that has a...

Geometry
1.2K views

F 95 Find the measures of angle CFE angle DEF there is a Desmos slide...

Algebra
1.2K views

Select the correct answer from each drop down menu Consider the equation below The equation...

Accounting
1.2K views

Pearl Products Limited of Shenzhen, China, manufactures and distributes toys throughout South East Asia. Three...

Accounting
1.2K views

Applied Materials, Inc. (AMAT / NASDAQ) Annual Common Size Balance...

Accounting
1.2K views

A company's inventory records indicate the following data for the month of January: ...

Accounting
1.2K views

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the...

Accounting
1.2K views

9. A company purchases 13800 shares of its own $5 par common stock on the...

Accounting
1.2K views

Study guide/Problem set 5 Part A First Analytical Narrative: Z A) On day 1 of...

Accounting
1.2K views

Johnson Filtration, Inc. provides maintenance service for water filtration systems throughout Southern Florida. Customers contact...