Consider the Experiment of Tossing a Fair Coin Three Times

question 137

Multiple Choice

Consider the experiment of tossing a fair coin three times and observing the number of heads that result (X = number of heads) .What is the standard deviation for this distribution?

• A)1.5
• B)1.22
• C)0.75
• D)0.87

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Definitions:

Tax Deduction

A reduction in taxable income, which can lower the total tax bill, allowed for certain expenses or investments.

Discount Rate

The interest rate used in discounted cash flow analysis to present future cash flows in terms of their value today.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Cash Inflows

Money received by a company during a given period, including revenues, investment returns, loans, and other forms of financing.