Suppose that next year the U.S. will be in one of the following economic conditions: Boom, Moderate Growth, Recession, or Depression. The probability that each economic condition will occur, and that a jewelry store will earn profits within that broader economic condition are listed below:
Economic Condition Probability Jewelry Store Profits
Boom 0.40 $400,000
Moderate Growth 0.30 $300,000
Recession 0.20 $100,000
Depression 0.10 -$500,000
The standard deviation of the jewelry store's profits next year (rounded to the nearest dollar) is:
a) $102,442
b) $125,483
c) $149,873
d) $125,264
e) $263,818