Calculate the Variance for the Below Chart

question 31

Multiple Choice

Calculate the variance for the below chart:

• A) ($85)
• B) ($10)
• C) $0
• D) $85

Understand the basic definitions and principles of economics including scarcity, economic change, and resource categorization.

Understand the concept of scarcity and its implications for economic decision-making.

Recognize the role of resources in economic activities and their categorization.

Identify the purpose and scope of economics in analyzing social problems and resource allocation.

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Definitions:

Risk-averse

A description of an investor or decision-maker who prioritizes minimizing risk over achieving potentially higher gains.

Certain Payoff

A guaranteed outcome or return from an investment, where the investor has absolute certainty over the amount to be received.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to another.

Market Failures

Situations in which the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.