The next three questions relate to table 1 showing three profit payoffs with ass
ID: 3053261 • Letter: T
Question
The next three questions relate to table 1 showing three profit payoffs with associated probabilities.
Table 1
Profit
Probability
$30
40
50
60
0.05
0.25
0.60
0.10
What is the expected profit for this distribution?
$11.87
$46
$47.5
$48.75
None of the above.
5 points
QUESTION 8
Refer to table 1. What is the standard deviation of this distribution?
6.98
48.74
22.91
8.37
3.45
5 points
QUESTION 9
What is the coefficient of variation for this distribution?
1.67
18.6
0.147
1.03
Profit
Probability
$30
40
50
60
0.05
0.25
0.60
0.10
Explanation / Answer
Ans:
7)Expected profit=47.5
Option c is correct.
8)Variance=48.75
standard deviation=sqrt(48.75)=6.98
option a is correct.
9)Cofficient of variation=6.98/47.5=0.147
option d is correct.
Profit(x) p(x) x*p(x) (x-47.5)^2*p(x) 30 0.05 1.50 15.3125 40 0.25 10.00 14.0625 50 0.6 30.00 3.75 60 0.1 6.00 15.625 Total= 1 47.50 48.75Related Questions
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