The monthly profit of a small convenience store is a random variable with mean μ = 100 000 and standard deviation σ = 6 000. If we define Y to be the profit per year, assume that the monthly profits are independent and find:
- The mean of Y
- The standard deviation of Y
Do I simply multiply the mean and standard deviation of X by 12 for the profit per year?
Does that imply mean of Y is equal to 1, 200, 000 and standard deviation is 72, 000?