In a Game Called Taxation and Evasion,a Player Rolls a Pair

question 22

Short Answer

In a game called Taxation and Evasion,a player rolls a pair of dice.If on any turn the sum is 7,11,or 12,the player gets audited.Otherwise,she avoids taxes.Suppose a player takes 5 turns at rolling the dice.The standard deviation of the number of times she will be audited is _____.

---

Definitions:

Sales Solicitations

Activities or efforts aimed at inducing potential customers to buy a service or a product.

Maturity Risk Premium

The additional return demanded by investors for holding longer-term securities, compensating for the higher risk of price fluctuations over time.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often associated with the level of risk.

Interest Rate Movements

The fluctuations in interest rates which can affect the cost of borrowing money and the performance of investments.