CAIE S2 2016 November — Question 4

Exam BoardCAIE
ModuleS2 (Statistics 2)
Year2016
SessionNovember
TopicLinear combinations of normal random variables
TypeExpectation and variance with context application

4 Each week a farmer sells \(X\) litres of milk and \(Y \mathrm {~kg}\) of cheese, where \(X\) and \(Y\) have the independent distributions \(\mathrm { N } \left( 1520,53 ^ { 2 } \right)\) and \(\mathrm { N } \left( 175,12 ^ { 2 } \right)\) respectively.
  1. Find the mean and standard deviation of the total amount of milk that the farmer sells in 4 randomly chosen weeks. During a year when milk prices are low, the farmer makes a loss of 2 cents per litre on milk and makes a profit of 21 cents per kg on cheese, so the farmer's overall weekly profit is \(( 21 Y - 2 X )\) cents.
  2. Find the probability that, in a randomly chosen week, the farmer's overall profit is positive.