The Following Table Presents the Probability Distribution of the Number $\sigma$

question 23

Multiple Choice

The following table presents the probability distribution of the number of vacations taken last year for a randomly chosen family. Compute the standard deviation $\sigma$ .
$\begin{array}{c|ccccc}x & 0 & 1 & 2 & 3 & 4 \\\hline P(x) & 0.06 & 0.67 & 0.18 & 0.07 & 0.02\end{array}$

• A) 1.38
• B) 1.32
• C) 0.77
• D) 0.60

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Definitions:

Cash Inflows

The total amount of money received by a company or individual during a set period.

Payback Period

The duration of time it takes to recover the cost of an investment, calculated as the point where net cash flow equals the initial investment.

Initial Cost

The initial expense associated with the purchase or investment in an asset before operational costs are considered.

Future Cash Inflows

Predicted incoming money to a company or project from operations, investments, or financing activities in the future.