ABSTRACT
If we make the common assumption that the €,■ are joindy normally distributed, it follows that aggregate sales S = 51 + s2 and profit rc = m S — R at any fixed level of R are normally distributed with the expected profit given by12
If we assume m = 1, the variance of aggregate sales/ profit is given by (19)
where cr, and cr2 are standard deviations and p is the corV relation coefficient.
