Paul Hunt is considering two business ventures. The anticipated returns (in thousands of dollars) of each...

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Paul Hunt is considering two business ventures. The anticipated returns (in thousands of dollars) of each...

Paul Hunt is considering two business ventures. The anticipated returns (in thousands of dollars) of each venture are described by the probability distributions:

Venture A

Earnings	Probability
-20	0.4
40	0.2
50	0.4

Venture B

Earnings	Probability
-15	0.2
30	0.4
40	0.4

Compute (in dollars) the mean and variance for each venture.

math Advanced-Math

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Answer 1

Answer #1

.Answer Given venture A Fanningsen probability -20 40 10.4 Mean - Σχε Pi -2000 4) +40 (0-2) + 50(0:4) -8+8+ 20 meam (M = $20 variance 0²= {upe prap) - 2 os E1532(0-2) +Bo%C0149 +6803643- 25% - 45 + 360 +670 — 626 = 1045 - 625 To = $420 Variance

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Answer 2

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