Answer:
The standard deviation of this probability distribution is 1.2.
Step-by-step explanation:
We have that:
P(X = 0) = 0.25
P(X = 1) = 0.3
P(X = 2) = 0.1
P(X = 3) = 0.35
Mean:
Each value multiplied by its probability. So
Variance:
Sum of the squares of the values subtracted from the mean, and multiplied by its probability.
Standard deviation:
Square root of the variance. So
The standard deviation of this probability distribution is 1.2.
Answer:
The amount needed to pay off the loan after 4 years is $70,192
Step-by-step explanation:
When interest is compounded annually, total amount A after t years is given by:
where P is the initial amount (principal), r is the rate and t is time in years.
From the question:
P = $60,000
r = 4% = 0.04
t = 4
The amount needed to pay off the loan after 4 years is $70,192
If we divide the amount by four, we will get the amount that is paid yearly (70192/4 = 17548). $17,548 is paid yearly.