The Table Below Is the Probability Table for a Random

question 49

Multiple Choice

The table below is the probability table for a random variable X. Find E(X) , Var(X) , and the standard deviation of X. $$\begin{array} { l | l l l l l } \text { Outcome } & - 2 & - 1 & 0 & 1 & 2 \\\hline \text { Probability } & 0.2 & 0.35 & 0.15 & 0.05 & 0.25\end{array}$$

• A) E(X) = -0.2; Var(X) = 2.22; standard deviation of X =1.49
• B) E(X) = -0.2; Var(X) = 2.16; standard deviation of X =1.47
• C) E(X) = -0.2; Var(X) = 4; standard deviation of X =2
• D) E(X) = -0.2; Var(X) = 0; standard deviation of X = 0
• E) none of these

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Definitions:

Pricing Constraint

Factors that limit the flexibility in setting prices for products or services, including costs, competition, market demand, and regulatory requirements.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the scale of the operation grows.

Product's Life Cycle

The progression of a product through several stages including introduction, growth, maturity, and decline, affecting marketing strategies and management decisions.

Nostalgia

A sentimental longing or wistful affection for the past, typically for a period or place with happy personal associations.