# Net Exports Are Calculated By Subtracting Imports From Exports Assume Exports An

Net Exports are calculated by subtracting Imports from Exports. Assume Exports and Imports are independent of one another.  If mean exports are \$25M with a standard deviation of \$3.5M and mean imports are \$30M with a standard deviation of \$5M, what is the expected value and variance of Net Exports?

A. E(Xn) = ‐\$5M V(Xn) =   37.25

B. E(Xn) = ‐\$5M V(Xn) =  ‐12.75

C. E(Xn) = ‐\$55M V(Xn) =  ‐12.75

D. E(Xn) = ‐\$55M V(Xn) =  162.56

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