Multiple period profit/loss calculation

Questions involving profit, loss, or cost aggregated over multiple independent time periods (multiple days, weeks, months) requiring use of properties of sums of independent normal variables.

1 questions · Standard +0.3

5.04a Linear combinations: E(aX+bY), Var(aX+bY)

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CAIE S2 2023 June Q4

6 marks Standard +0.3

4 The mass, in tonnes, of steel produced per day at a factory is normally distributed with mean 65.2 and standard deviation 3.6. It can be assumed that the mass of steel produced each day is independent of other days. The factory makes \(\\) 50$ profit on each tonne of steel produced. Find the probability that the total profit made in a randomly chosen 7-day week is less than \(\\) 22000$.