Probability and Variance

Related BrainMass Solutions

• Effect of Risk on Shape of Probability Distribution

  In case of more risky expected return, spread (variance) is high i.e. probability distribution seems to be flatter. If the riskiness is further increased, variance further increases and it becomes more flatter.

• Statistics: Probability density function, central limit theorem

  c) Let where are iid random variables with mean  and variance 2. By central limit theorem we have is normally distributed with mean and variance for large values of n. Hence, follows normal distribution with mean  and variance .

• Critical Path and PERT

  Normal probability distribution has two parameters- average and standard deviation The average time of completion is the sum of completion time for activities on the critical path.

• Solve: Expected Mean, Variance and Standard Deviation

  427338 Solve: Expected Mean, Variance and Standard Deviation In answering the following questions, it is given that the potential investment has the following range of possible outcomes and probabilities: 10% probability of a -20% return, 40% probability

• Finding Expected Return, Variance Return and Standard Deviation

  383337 Finding Expected Return, Variance Return and Standard Deviation Consider the following probability distribution of returns for Alpha Corporation: Current Stock Price ($) Stock Price in One Year ($) Return R Probability PR

• Probability: Joint Probability Mass Function, Covariance and Variance

  9843 Probability: Joint Probability Mass Function, Covariance and Variance Let X and Y have joint probability mass function Pr{X = i, Y = j}= c(i + 1)(j + 2) for i >= 0, j >= 0, and i + j < 4.

• Expected return and standard deviation

  The probability the economy will contract is 0.2, the probability of moderate growth is 0.6, and the probability of a rapid expansion is 0.2 If the economy contracts, the expected retun on the portfolio is 5%.

• probability of discrete random variable

  So The solution shows how to calculate the probability, mean and variance of discrete random variable.

• Expected value, variance, standard deviation

  4.5000 Expected value= 6.00 Variance= 4.50 Standard deviation=square root of Variance= 2.12 =square root of 4.5 The expected value, variance, and the standard deviation are calculated given the probability distribution

• Constructing a probability distribution using a frequency distribution

  Then find the mean, variance and standard deviation.