Assignment:
The budgeting process fora mid western college resulted in expense forecasts for the corning year (in S millions) of $9. $10, $11. $12. and $13. Because the actual expenses are unknown, the following respective probabilities are assigned: .3..2..25..05. and .2.
a. Show the probability distribution for the expense forecast.
b. What is the expected value of the expense forecast for the coming year?
c. What is the variance of the expense forecast for the coming year?
d. If income projections for the year are estimated at S12 million, comment on the financial position of the college.
Provide complete and step by step solution for the question and show calculations and use formulas.