At a Certain Discount Store, the Number of People in Checkout

question 51

Multiple Choice

At a certain discount store, the number of people in checkout lines varies. The probability model for the number of people in a randomly chosen line is: $\begin{array} { l c c c c c c } \text { Number in } & 0 & 1 & 2 & 3 & 4 & 5 \\\text { line } & & & & & & \\\text { Probability } & 0.08 & 0.15 & 0.20 & 0.22 & 0.15 & 0.20\end{array}$
What is the mean number of people in a line?

• A) 2.5
• B) 15.92
• C) 2.81
• D) 2.89

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Definitions:

Factor Portfolio

A portfolio constructed to have a high sensitivity to a specific factor or factors, used to capture returns associated with those factors.

Well-Diversified

A portfolio strategy involving the mix of different investments to reduce exposure to risk.

Beta

A scale for determining the level of fluctuation or consistent risk in a security or portfolio compared with the overall market.

Risk Premium

The additional return an investor expects to receive for taking on additional risk compared to a risk-free asset.