Copper A company which buys and sells copper has just lost most of their data. They come to you and ask: We only know that on average we have had 2
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Not really sure how to begin answering this problem. Any help is greatly appreciated!

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Copper A company which buys and sells copper has just lost most of their data. They come
to you and ask: We only know that on average we have had 2 million dollars worth of copper in stock over the
last ten years. In that span the price of copper has not gone above 5 dollars/lb and we cannot
keep more than half a million pounds became of space restrictions. How likely is it that five
years ago we had less than 1 million dollars worth of copper in stock? 3.. Provide an upper bound for the probability that the company is interested in. b. Is it sensible to model the price of copper and the amount of copper in stock as independent
random variablis? c. Whatever your answer in (b)1 you decide to model the price and the amount as independent
random variables. You look up the mean and the standard deviation of the price, which is 4.5
dollars/ lb (mean) and 0.2 dollars/lb (standard deviation), and you learn from the company
that the standard deviation of stored copper has been of 10 0(1) lbs. Compute another bound
for the probability of interest under your assumptions using this information.

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