Paul Hunt Is Considering Two Business Ventures

question 233

Multiple Choice

Paul Hunt is considering two business ventures. The anticipated returns (in thousands of dollars) of each venture are described by the probability distributions: Venture A Venture B Compute (in dollars) the mean and variance for each venture.

• A) Venture A: Venture B:
• B) Venture A: Venture B:
• C) Venture A: Venture B:
• D) Venture A: Venture B:

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Definitions:

Skewed

A description of a distribution that is not symmetrical, with a longer tail on one side of the central peak than the other, indicating that it is either left or right skewed.

Bimodal

Having or characterized by two distinct peaks or modes in a distribution of values.

Asymmetrical

Lacking symmetry; having parts that fail to correspond to one another in shape, size, or arrangement.

Mode

The most repeatedly occurring number in a set of data.