Find the Standard Deviation of the Binomial Random Variable

question 123

Multiple Choice

Find the standard deviation of the binomial random variable.
-The probability of winning a certain lottery is 1/70,366. For people who play 929 times, find the standard deviation for the random variable X, the number of wins.

• A)3.5021
• B)0.1259
• C)0.0132
• D)0.1149

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Definitions:

Wager Amount

The sum of money placed in a bet on the outcome of an event with an uncertain result.

Risk Premium

The extra return above the risk-free rate demanded by investors for holding riskier assets.

Expected Cost

The forecasted or anticipated cost of undertaking a project, investment, or any financial activity, considering all possible outcomes and their probabilities.

Expected Income

Expected income refers to the amount of money an individual anticipates earning over a specified future period, taking into account various factors such as salary, investments, and other sources of income.