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Business, 02.12.2019 22:00 105001964

An office complex leases space to various companies. these leases include energy costs associated with heating during the winter. to anticipate costs in the coming​ year, the managers developed two random variables x and y to describe costs for equivalent amounts of heating oil​ (x) and natural gas​ (y) in the coming year. both x and y are measured in dollars per btu of heat produced. the complex uses both fuels for​ heating, with yσx=σy.
(a) if managers believe that costs for both fuels tend to rise and fall​ together, then they should model x and y as independent.
(b) because the means and sds of these random variables are the​ same, the random variables x and y are identically distributed.
(c) if told that the costs of heating oil and natural gas are​ uncorrelated, an analyst should then treat the joint distribution as ​p(x, y)=​p(x)p(y).

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