Below is a table showing the probability distribution for the random variable number of stocks doubling in

Question:

Below is a table showing the probability distribution for the random variable “number of stocks doubling in value” described in Exercise 5.

Number of Stocks Doubling Probability

X P(x)

0…………………………………….. .0640

1……………………………………... 2880

2……………………………………... 4320

3……………………………………... 160

a. Graph the distribution.

b. Compute the mean (expected value), the variance and the standard deviation for the random variable.

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