The possible outcomes from a business venture are graded from 5 to 1, as shown in the
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The possible outcomes from a business venture are graded from 5 to 1, as shown in the following table.
a. Calculate the expected grade and use it to describe the expected outcome of the venture. Find the standard deviation and explain what it gives a measure of in this case.
b. Investigate the expected outcome and the standard deviation when the grading is reversed (i.e. high profit is graded 1, and so on). Compare these outcomes with those from part a.
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Related Book For
Cambridge International AS & A Level Mathematics Probability & Statistics 1 Coursebook
ISBN: 9781108407304
1st Edition
Authors: Dean Chalmers, Julian Gilbey
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