# Question: Explain the meaning of the variance of a random variable

Explain the meaning of the variance of a random variable. What are possible uses of the variance?

## Answer to relevant Questions

Refer to problem 3-23. Find the variance and the standard deviation of hedge fund managers' income. x ($ millions) P(x) $1,700 ...... 0.2 1,500 ...... 0.2 1,200 ...... 0.3 1,000 ...... 0.1 800 ...... 0.1 600 ...Look at the histogram of probabilities in the binomial distribution template for the case n = 5 and p = 0.6. a. Is this distribution symmetric or skewed? Now, increase the value of n to 10, 15, 20, . .. Is the distribution ...A graduating student keeps applying for jobs until she has three offers. The probability of getting an offer at any trial is 0.48. a. What is the expected number of applications? What is the variance? b. If she has enough ...A student takes the campus shuttle bus to reach the classroom building. The shuttle bus arrives at his stop every 15 minutes but the actual arrival time at the stop is random. The student allows 10 minutes waiting time for ...The number of intercity shipment orders arriving daily at a transportation company is a random variable X with the following probability distribution: X P(x) 0 ..... 0.1 1 ..... 0.2 2 ..... 0.4 3 ..... 0.1 4 ..... 0.1 5 ...Post your question