Find the Mean and Standard Deviation of the Probability Distribution $$\begin{array} { l | l } x & P ( x ) \\\hline 0 & .125 \\1 & .428 \\2 & .256 \\3 & .108 \\4 & .083\end{array}$$

question 72

Short Answer

Find the mean and standard deviation of the probability distribution for the random variable x, which represents the number of cars per household in a small town. $$\begin{array} { l | l } x & P ( x ) \\\hline 0 & .125 \\1 & .428 \\2 & .256 \\3 & .108 \\4 & .083\end{array}$$

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Definitions:

Excess Returns

The return on an investment that exceeds the benchmark or risk-free return, reflecting the additional risk taken by the investor.

Small-company Stocks

Equity investments in companies with smaller market capitalization, often characterized by higher volatility and growth potential compared to large-cap stocks.

Large-company Stocks

Shares of large capitalization companies, often known for their stability and paying dividends.

Treasury Bills

Short-term government securities issued at a discount from the face value and mature in a year or less.