The Number of Bad Checks Received Per Day by a Store

question 44

Essay

The number of bad checks received per day by a store and the respective probabilities are shown below.

a.What is the expected number of bad checks received per day?
b.Determine the variance in the number of bad checks received per day.
c.What is the standard deviation?

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Definitions:

Behavioral Economics

studies the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions and the consequences for market prices, returns, and resource allocation.

Myopia

A common vision condition where close objects appear clearly, but distant objects are blurry, often referred to as nearsightedness.

Behavioral Economists

Scholars and professionals dedicated to analyzing how psychological, cognitive, emotional, cultural, and social influences affect the economic choices made by individuals and organizations.

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Describes a situation where a person's preferences change over time in such a way that what they prefer at one point in time is inconsistent with what they will prefer at another time.