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    Expected value, variance & standard deviation

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    4.11 An investment syndicate is trying to decide which two $200,000 apartment houses to buy. An advisor estimates the following probabilities for a five-year net returns ( in thousands of dollars):

    Return: -50 0 50 100 150 200 250
    Probability for house 1: .02 .03 .20 .50 .20 .03 .02
    Probability for house 2: .15 .10 .10 .10 .30 .20 .05

    a. Calculate the expected net return for house 1 and for house 2.

    b. Calculate the respective variances and standard deviations.

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    https://brainmass.com/statistics/distribution-of-data/expected-value-variance-standard-deviation-328540

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    The expert examines expected values, variance and standard deviation. A complete, neat and step-by-step solution is provided in the attached file.

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