Ten customers are waiting in line to pay for purchases at a busy retailer during the holidays. Let  denote the amounts bought by these customers, and model them as iid random variables with mean $150...


Ten customers are waiting in line to pay for purchases at a busy retailer during the holidays. Let
 denote the amounts bought by these customers, and model them as iid random variables with mean $150 and standard deviation $50.


a. What are the mean and standard deviation of the total amount purchased by these 10 customers?
8


b. Why is the standard deviation of the sum of the 10 purchases so much less than 10 times the standard deviation of each?9



May 04, 2022
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