Use the following two probability distributions for sales of a firm to answer Questions :
$$\begin{array} { c c c }
\text { Sales } & \begin{array} { c }
\text { Distribution1} \
\text { Probability }
\end{array} & \begin{array} { c }
\text { Distribution2} \
\text { Probability }
\end{array} \
\hline 2,000 & 0.05 & 0.05 \
3,000 & 0.20 & 0.15 \
4,000 & 0.50 & 0.20 \
5,000 & 0.20 & 0.35 \
6,000 & 0.05 & 0.25
\end{array}$$
-Which distribution is more risky?
A) Distribution 1 has a higher variance than Distribution 2, so Distribution 1 is more risky.
B) Distribution 2 has a higher variance than Distribution 1, so Distribution 2 is more risky.
C) Distribution 2 has a larger standard deviation than Distribution 1, so Distribution 2 is more risky.
D) both a and c
E)non of the bove

Question

Use the following two probability distributions for sales of a firm to answer Questions :
 $$\begin{array} { c c c } 
\text { Sales } & \begin{array} { c } 
\text { Distribution1} \
\text { Probability }
\end{array} & \begin{array} { c } 
\text { Distribution2} \
\text { Probability }
\end{array} \
\hline 2,000 & 0.05 & 0.05 \
3,000 & 0.20 & 0.15 \
4,000 & 0.50 & 0.20 \
5,000 & 0.20 & 0.35 \
6,000 & 0.05 & 0.25
\end{array}$$
-Which distribution is more risky?
A) Distribution 1 has a higher variance than Distribution 2, so Distribution 1 is more risky.
B) Distribution 2 has a higher variance than Distribution 1, so Distribution 2 is more risky.
C) Distribution 2 has a larger standard deviation than Distribution 1, so Distribution 2 is more risky.
D) both a and c
E)non  of the bove

Quizplus · Accepted Answer

The Answer of Use the following two probability distributions for sales of a firm to answer Questions :
 $$\begin{array} { c c c } 
\text { Sales } & \begin{array} { c } 
\text { Distribution1} \
\text { Probability }
\end{array} & \begin{array} { c } 
\text { Distribution2} \
\text { Probability }
\end{array} \
\hline 2,000 & 0.05 & 0.05 \
3,000 & 0.20 & 0.15 \
4,000 & 0.50 & 0.20 \
5,000 & 0.20 & 0.35 \
6,000 & 0.05 & 0.25
\end{array}$$
-Which distribution is more risky?
A) Distribution 1 has a higher variance than Distribution 2, so Distribution 1 is more risky.
B) Distribution 2 has a higher variance than Distribution 1, so Distribution 2 is more risky.
C) Distribution 2 has a larger standard deviation than Distribution 1, so Distribution 2 is more risky.
D) both a and c
E)non  of the bove

Use the Following Two Probability Distributions for Sales of a Firm