The nation of Moldovia has recently created an economic development plan that includes expanded e...
The nation of Moldovia has recently created an economic development plan that includes expanded exports and imports. It has completed a series of extensive studies of the world economy and Moldovia’s economic capability, following Moldovia’s extensive 10- year educational-enhancement program. The resulting model indicates that in the next year exports will be normally distributed with a mean of 80 and a variance of 900 ( in billions of Moldovian dollars). In addition, imports are expected to be normally distributed with a mean of 100 and a variance of 625 in the same units. The covariance between exports and imports is expected to be + 0.50 Define the trade balance as exports minus imports. The mean of the trade balance ( exports minus imports) if the model parameters given above are true is