Stuart Company's Manager Believes That Economic Conditions During the Next $\text { Economic }$

question 54

Multiple Choice

Stuart Company's manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns? (Hint: Use the formula for the standard deviation of a population, not a sample.)
$\text { Economic }$
$\begin{array}{llr}\text { Conditions } & \text { Prob. } & \text { Return } \\\hline \text { Strong } & 30 \% & 32.0 \% \\\text { Normal } & 40 \% & 10.0 \% \\\text { Weak } & 30 \% & -16.0 \%\end{array}$

• A) 17.69%
• B) 18.62%
• C) 19.55%
• D) 20.52%
• E) 21.55%

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Definitions:

Balanced Dimorphisms

The occurrence of two different forms or morphs of a species in the same population, maintained in a stable equilibrium through natural selection.

Population

A group of individuals of the same species living and interbreeding within a given area.

Illustration

A visualization or a depiction made by an artist, such as a drawing or painting, that complements, elucidates, or decorates text.

Founder Effect

After a small group of individuals found a new population, allele frequencies in the new population differ from those in the original population.