In Figure Below, What Is True About the Two Jobs

question 132

Multiple Choice

In figure below, what is true about the two jobs?

• A) Job 1 has a larger standard deviation than Job 2.
• B) All outcomes in both jobs have the same probability of occurrence.
• C) A risk-averse person would prefer Job 2.
• D) A risk-neutral person would prefer Job 1.
• E) Job 1 has the same expected income as Job 2.

---

Definitions:

Mathematical Difference

The result of subtracting one quantity from another.

Range

The difference between the largest and smallest values in a dataset, a measure of spread or variability.

Hypotheses

Theoretical statements set forth for experimentation that predict a possible relationship between two or more variables, which may include both null and alternative hypotheses.

Interquartile Range

A measure of statistical dispersion, equal to the difference between the upper and lower quartiles, representing the middle 50% of the data.