Use the following information to answer questions #6 through #7: Likely return a

Question

Use the following information to answer questions #6 through #7: Likely return amounts per share for a certain investment were estimated as follows: Probability 0.22 0.20 0.58 Potential Returns $1,000 $2,000 $3,000 6. What is the expected value (mean) of the potential returns? A. 2,500 B. 2,360 C. 6,000 D. 2,000 7. What is the standard deviation of the potential returns? A. 0 B. 1,545.57 C. 818.78 D. 670,400 Use the following information to answer questions #8 through #9: 2, 2, 4, 5, 6, 8, 8 8. The 2nd quartile is? A. 4.5 B. 5 C. 2 and 8 D. 8 9. The sample variance is? (You may find the worksheet below useful) A. 5.43 B. 6.33 C. 3.88 Values Deviations Squared deviations 6

Explanation / Answer

Solution:-

6. option B. 2360

Explanation:-    = xp(x)

= 1000*0.22 + 2000*0.20+3000*0.58

= 2360

7. option C. 818.78

8. option B. 5

Explanation:

Ordering the data from least to greatest, we get:

2   2   4   5   6   8   8   

So, the median is 5 .

9. option B. 6.33

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