# Standard deviation of possible sales prices

I have decided to invest in a piece of real estate. Management has estimated that the real estate can be sold in 5 years for the following possible prices:

Price Probability

$20,000 0.20

$25,000 0.25

$30,000 0.30

$35,000 0.25

What is the standard deviation of possible sales prices?

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#### Solution Preview

To calculate the standard deviation, we need to calculate the expected price

Expected price = Sum (Probability X associated price)

Expected ...

#### Solution Summary

The solution explains how to calculate the standard deviation of possible sales prices

$2.19