The cost C(Q) of producing a quantity Q of widgets to satisfy demand is C(Q) = 4000+20Q, but the quantity demanded is random. If the mean and standard deviation of demand are 500 and 200, respectively, then what are the mean and standard deviation of costs?
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The cost C(Q) of producing a quantity Q of widgets to satisfy demand is
C(Q) = 4000+20Q, but the quantity demanded is random. If the mean and standard
deviation of demand are 500 and 200, respectively, then what are the mean and
standard deviation of costs?
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