1. Suppose an individual is considering an investment in which there are exactly three possible outcomes, whose probabilities and pay-offs are given below
|
Outcome
|
Probability
|
Pay-offs
|
|
A
|
.3
|
$100
|
|
B
|
?
|
50
|
|
C
|
.2
|
?
|
The expected value of the investment is $25. Fill in the missing cells. What is the variation and standard deviation of the investment?
- More specifically, how do I fill in the missing cells?