The following table summarizes investment outcomes and corresponding probabilities for a particular oil well: X= the outcome
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The following table summarizes investment outcomes and corresponding probabilities for a particular oil well:
X= the outcome in $ p(x)
-$ 40,000 (no oil)........... .25
10,000 (some oil) ........... .7
70,000 (much oil) ........... .05
a. Graph p( x); that is, graph the probability distribution of x.
b. Find the expected monetary outcome. Mark this value on your graph of part a. Then interpret this value.
c. Calculate the standard deviation of x.
DistributionThe word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Related Book For
Essentials Of Business Statistics
ISBN: 9780078020537
5th Edition
Authors: Bruce Bowerman, Richard Connell, Emily Murphree, Burdeane Or
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