Exhibit 5-5
AMR is a computer-consulting firm. The number of new clients that they have obtained each month has ranged from 0 to 6. The number of new clients has the probability distribution that is shown below.
-Refer to Exhibit 5-5. The variance is
A)1.431
B)2.0475
C)3.05
D)21

Question

Exhibit 5-5
AMR is a computer-consulting firm. The number of new clients that they have obtained each month has ranged from 0 to 6. The number of new clients has the probability distribution that is shown below. 
-Refer to Exhibit 5-5. The variance is
A)1.431 
B)2.0475 
C)3.05 
D)21

Quizplus · Accepted Answer

The variance formula for a discrete probability distribution is Σ[P(Xi) × (Xi - μ)²], where Xi represents each possible outcome, P(Xi) represents the probability of that outcome, and μ represents the mean. Using this formula with the given values, we get: 
Variance = (0.12 × (0 - 2.5)²) + (0.21 × (1 - 2.5)²) + (0.26 × (2 - 2.5)²) + (0.22 × (3 - 2.5)²) + (0.13 × (4 - 2.5)²) + (0.06 × (6 - 2.5)²) 
Variance = 2.0475 
Therefore, the answer is B.

Exhibit 5-5 AMR Is a Computer-Consulting Firm. the Number of New Clients