Question

A furniture store is having a Valentine’s Day sale on leather sofas. Customers spin a wheel to determine whether they get a discount of $100, $200, or $400 off their purchase. They get a $100 discount with a probability of 0.60, a $200 discount with a probability of 0.25, and a $400 discount with a probability of 0.15.

Let X be the random variable in this problem. In words, define X.

Determine the population standard deviation of X. Express your answer to two decimal places using conventional rounding methods. Include units in your answer.

Answer 1

We know,

And,

Now,

So, i.e. $105.36