Answer:
a. E(x) = 5.2000%
b. Variance = 122.16
Standard Deviation = 11.05
Step-by-step explanation:
Given
Scenario Probability Rate of Return
1 0.20 −16 %
2 0.40 7 %
3 0.40 14 %
a.
Expected Rate of Return = E(x)
E(x) = (-16% * 0.20) + (0.40 *7%) + (0.40 * 14%)
E(x) = -3.2% + 2.8% + 5.6%
E(x) = 5.2%
E(x) = 5.2000%
b.
Variance also known as the average of the squared differences from the Mean.
To calculate variance, start by calculating the mean, or average, of your sample. Then, subtract the mean from each data point, and square the differences. Next, add up all of the squared differences
Variance =
V = σ²= (−16 − 5.2)² * 0.20 + (7 − 5.2)² * 0.40 + (14 − 5.2)² * 0.40
V = σ² =122.16
Standard Deviation = σ = √SD
σ = √122.16
σ = 11.05124427383631
σ = 11.05 --- Approximated
Put 10 where n is, then do the arithmetic.
... the cost for 10 people equals 100 + 4·10 = 100 + 40 = 140 . . . . dollars
Reflection over the x-axis is (x,y) goes to (x,-y)
So g(x) goes to -3x
Answer:
0.9265
Step-by-step explanation: