As a baseline when planning future advertising, retail executives treat the doll

Question

As a baseline when planning future advertising, retail executives treat the dollar values of sales on consecutive weekends as independent and identically distributed (iid) random variables. The amounts sold on two consecutive weekends (call these X1 and X2) are iid random variables with mean and standard deviation . Mark the statement below as True or False. If you believe that the statement is false, briefly say why you think it is false If a promotion were to introduce negative dependence between the amounts sold on two weekends, then we would need the correlation in order to find E(X1 -X2)- Choose the correct answer below. A. O B. ° C. The statement is true The statement is false because the dependence only affects the expected difference if it's positive. The statement is false because the dependence does not affect the expected difference.

Explanation / Answer

Option C is Correct because the dependency does not affect the expected difference

It will Simply be

E(X1-X2)

= E(X1)-E(X2)

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