Given the Possible Outcomes to a Lottery Being Only the Values

question 45

Multiple Choice

Given the possible outcomes to a lottery being only the values 2, 6 with equal probabilities, calculate the expected value, variance and standard deviation?

• A)EV = 4, variance = 16, standard deviation = 4
• B)EV = 4, variance = 4, standard deviation = 2
• C)EV = 4, variance = 4, standard deviation = 4
• D)EV = 3.5, variance = 4, standard deviation = 2

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Definitions:

Trademark

A symbol, word, or words legally registered or established by use as representing a company or product.

Intermediaries

Individuals or organizations that act as middlemen in a transaction between two parties, facilitating interaction or negotiation between them.

Disintermediation

The removal of intermediaries from a supply chain or business process, often through direct transactions between producers and consumers facilitated by digital technologies.

Porter's Five Forces

A framework for analyzing the competitive forces within an industry, including competition, potential entrants, substitute products, bargaining power of suppliers, and bargaining power of customers.