The budgeting process for a midwestern college resulted inexpense forecasts for the coming year (in $ millions) of $9, $10,$11, $12, and $13. Because the actual expenses are unknown, thefollowing respective probabilities are assigned: 0.29, 0.17, 0.25,0.07, and 0.22.
- Show the probability distribution for the expenseforecast.
- What is the expected value of the expense forecast for thecoming year (to 2 decimals)?
- What is the variance of the expense forecast for the comingyear (to 2 decimals)?
- If income projections for the year are estimated at $12million, how much profit does the college expect to make (reportyour answer in millions of dollars, to 2 decimals)?
