Refer to the following probability distribution for profit
$$\begin{array} { c c }
\text { Prafit } & \text { Prabability } \
\hline \$ 30 & 0.05 \
40 & 0.25 \
50 & 0.60 \
60 & 0.10
\end{array}$$
-What is the variance of this distribution?
A) 48.75
B) 2,376
C) 525
D) 70
E) 11.875

Question

Refer to the following probability distribution for profit
 $$\begin{array} { c c } 
\text { Prafit } & \text { Prabability } \
\hline \$ 30 & 0.05 \
40 & 0.25 \
50 & 0.60 \
60 & 0.10
\end{array}$$
-What is the variance of this distribution?
A) 48.75
B) 2,376
C) 525
D) 70
E) 11.875

Quizplus · Accepted Answer

The variance is calculated as the sum of the squared deviations from the mean, weighted by their probabilities. The mean is calculated as the sum of the products of the profits and their probabilities. In this case, the mean is (0.05 * 30) + (0.25 * 40) + (0.60 * 50) + (0.10 * 60) = 48.75. The variance is then calculated as (0.05 * (30 - 48.75)^2) + (0.25 * (40 - 48.75)^2) + (0.60 * (50 - 48.75)^2) + (0.10 * (60 - 48.75)^2) = 48.75.

Refer to the Following Probability Distribution for Profit Prafit Prabability $300.05400.25500.60600.10\begin{array} { c c } \text { Prafit } & \text { Prabability } \\\hline \$ 30 & 0.05 \\40 & 0.25 \\50 & 0.60 \\60 & 0.10\end{array} Prafit $30405060​ Prabability 0.050.250.600.10​​

Refer to the Following Probability Distribution for Profit $\begin{array} { c c } \text { Prafit } & \text { Prabability } \\\hline \$ 30 & 0.05 \\40 & 0.25 \\50 & 0.60 \\60 & 0.10\end{array}$