Consider the Experiment of Tossing a Fair Coin Three Times

question 137

Multiple Choice

Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads) .What is the standard deviation for this distribution?

• A)1.5
• B)1.22
• C)0.75
• D)0.87

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Definitions:

Discount Rate

A rate used to determine the present value of future cash flows, reflecting the time value of money and risk of the cash flows.

Profitability Index

A calculation that determines the relative profitability of an investment, indicating the value created per unit of investment.

Cash Inflows

Funds that enter a business, resulting from sales, financing, or investment returns, contributing to the company's cash balance.

Payback

the period of time required for an investment to generate funds to recover its initial outlay.