Problem based on the gaussian vector
Solve the following problem:
Show that if X is a Gaussian vector, the random vector Y = AX, where the invertible matrix A represents a linear transformation, is also a Gaussian vector whose mean and covariance matrix are given by
my = AmxCy = ACxAt
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Using the capital asset pricing model, what is Penn Trucking's cost of retained earnings?
Determine the overhead application rate. Determine how much overhead was applied to production.
Management is working toward that as a goal. This problem asks you to calculate and evaluate the company"s variances.
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Show that if X is a Gaussian vector, the random vector Y = AX, where the invertible matrix A represents a linear transformation, is also a Gaussian vector.
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Compute the total, controllable, and volume variances for overhead. What are possible causes of the variances computed in part (a)?
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