Calendar PAWS USA
The amount of money that Jon can save after working for a summer is a random variable S with a mean
of $1500 and a standard deviation of $150. After saving this money Jon plans to go on a trip to India. He
will change his money into Rupees at an exchange rate of 43 Rupees to one Dollar. This money he will
bring to India. When he arrives in India he will buy a used motorbike. The price in India of a motorbike
of the type he wants is a random variable B with a mean of 16,000 Rupees and a standard deviation of
700 Rupees. The amount of money Jon will have left (in Rupees) after changing his savings into Rupees
and buying a motorbike in India is a random variable P which can be expressed in terms of S and B as
P = 435-B. Find the mean and standard deviation of Pin Rupees. Assume that Jon's savings and the
price of the bike are independent.
A. u = 48,500 Rupees, o = 6412 Rupees
B. u= 80,500 Rupees, o = 1207 Rupees
C. u = 80,500 Rupees, o = 7150 Rupees
D. u = 48,500 Rupees, o = 5750 Rupees
E. u = 48,500 Rupees, o = 6488 Rupees