You Pay $1,000 to Flip a Two-Sided,fair Coin at the Local

question 2

Multiple Choice

You pay $1,000 to flip a two-sided,fair coin at the local fair.If you flip heads,you walk away with $3,000,a return of 200%.However,if you flip tails,you walk away with $250,a return of -75%.What is the standard deviation of the returns?

• A) 0.1375%
• B) 1.375%
• C) 13.75%
• D) 137.5%
• E) 1,375%

---

Definitions:

Data

Information that has been translated into a form that is efficient for movement or processing.

Weighted Mean

An average where each data point contributes to the mean with a weight that reflects its importance or frequency.

Median

The middle value in a set of data when the values are arranged in ascending or descending order, or the average of the two middle values when there is an even number of values.

Extreme Scores

Observations or data points that are significantly higher or lower than the majority of other values in a dataset, potentially influencing overall analysis.