What Is the Expected Value of the Probability Distribution for the Following

question 34

Essay

What is the expected value of the probability distribution for the following product? $$\begin{array} { | l | c | } \hline N P V & \text { Estimated probability of Product Alpha } \\\hline £ 4,500 & 0.1 \\\hline £ 6,000 & 0.1 \\\hline £ 7,500 & 0.2 \\\hline £ 9,000 & 0.2 \\\hline £ 10,500 & 0.2 \\\hline £ 12,000 & 0.1 \\\hline £ 13,500 & 0.1 \\\hline\end{array}$$

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Definitions:

Histogram

A graphical representation of the distribution of numerical data, intending to show the frequency of data points within consecutive, non-overlapping intervals.

Coefficient Of Variation

A standardized measure of the dispersion of a probability distribution or frequency distribution, calculated as the ratio of the standard deviation to the mean.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values, indicating how much the individual data points differ from the mean.

Median

The middle value or point in a data set, where half the data lies above and half below it.