Consider a lottery with three possible outcomes a payoff of 10, a payoff of 0, and a payoff of 20 The probability of each outcome is 0 2, 0 5, and 0 3, respectively a) Sketch the probability distribution of this lottery b) Compute the expected value of the lottery c) Compute the variance and the standard deviation of the lottery

Question: Consider a lottery with three possible outcomes: a payoff of -10, a payoff of 0, and a payoff of +20. The probability of each outcome

Consider a lottery with three possible outcomes: a payoff of -10, a payoff of 0, and a payoff of +20. The probability of each outcome is 0.2, 0.5, and 0.3, respectively.
a) Sketch the probability of this lottery.
b) Compute the expected value of the lottery.
c) Compute the variance and the standard deviation of the lottery.

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