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