THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 88

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
Let X be a random variable with the following distribution:

-Find the standard deviation of X.

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Definitions:

Risk Averse

A description of an individual's or entity's preference to avoid risk, often by choosing options with certain outcomes over those with higher degrees of uncertainty.

Insurance

A form of risk management primarily used to hedge against the risk of a contingent or uncertain loss.

Expected Value

The calculated average of all possible values for a random variable, considering the probabilities of each outcome.

Risk Lover

An individual or entity that prefers or seeks out investment opportunities with higher risk for the potential of higher returns.