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Subtracting imports from exports

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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?

Answer choices: 

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

Reference no: EM131319665

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