Question

In: Statistics and Probability

Given the probability distributions shown to the​ right, complete the following parts. a. Compute the expected...

Given the probability distributions shown to the​ right, complete the following parts.

a. Compute the expected value for each distribution.

b. Compute the standard deviation for each distribution.

c. Compare the results of distributions A and B.

a. What is the expected value for distribution​A?

μ=

​(Type an integer or decimal rounded to three decimal places as​ needed.)

What is the expected value for distribution​ B?

μ=

​(Type an integer or decimal rounded to three decimal places as​needed.)

b. What is the standard deviation for distribution​ A?

σ=

​(Type an integer or decimal rounded to three decimal places as​ needed.)

What is the standard deviation for distribution​ B?

σ=

​(Type an integer or decimal rounded to three decimal places as​ needed.)

c. Use these results to compare distribution A and distribution B.

A.Distribution A is right​-skewed, distribution B is left​-skewed.

B.Distribution A is​ symmetric, distribution B is symmetric.

C.Distribution A is​ symmetric, distribution B is right​-skewed.

D.Distribution A is left​-skewed, distribution B is symmetric.

E. Distribution A is left​-skewed, distribution B is right​-skewed.

Distribution A

Distribution B

X

​P(X)

X

​P(X)

0

0.03

0

0.50

1

0.12

1

0.18

2

0.17

2

0.17

3

0.18

3

0.12

4

0.50

4

0.03

Solutions

Expert Solution

Solution:

The mean and standard deviation of the distribution A are:

a. What is the expected value for distribution​A?

​(Type an integer or decimal rounded to three decimal places as​needed.)

What is the expected value for distribution​ B?

​(Type an integer or decimal rounded to three decimal places as​needed.)

b. What is the standard deviation for distribution​ A?

​(Type an integer or decimal rounded to three decimal places as​needed.)

What is the standard deviation for distribution​ B?

​(Type an integer or decimal rounded to three decimal places as​needed.)

c. Use these results to compare distribution A and distribution B.

Answer: E. Distribution A is left-skewed, distribution B is right-skewed.


Related Solutions

EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (8%) (21%) 0.2 6 0 0.4 10 24 0.2 24 30 0.1 36 49 Calculate the expected rate of return, rB, for Stock B (rA = 12.80%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 18.87%.) Do not round intermediate calculations. Round your...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.2 (14%) (35%) 0.2 4 0 0.3 12 20 0.2 18 29 0.1 30 42 Calculate the expected rate of return, rB, for Stock B (rA = 8.20%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 25.07%.) Do not round intermediate calculations. Round your...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.2 (11%) (27%) 0.2 3 0 0.3 11 21 0.2 22 27 0.1 40 41 A.Calculate the expected rate of return, rB, for Stock B (rA = 10.10%.) Do not round intermediate calculations. Round your answer to two decimal places. % B.Calculate the standard deviation of expected returns, σA, for Stock A (σB = 22.00%.) Do not round intermediate calculations. Round your...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (14%) (29%) 0.2 3 0 0.4 13 23 0.2 24 27 0.1 35 37 Calculate the expected rate of return, rB, for Stock B (rA = 12.70%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 18.47%.) Do not round intermediate calculations. Round your...
Expected returns Stocks A and B have the following probability distributions of expected future returns: Probability...
Expected returns Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.2 -10% -39% 0.2 6 0 0.3 11 21 0.2 20 27 0.1 36 44 Calculate the expected rate of return, rB, for Stock B (rA = 10.10%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 26.59%.) Do not round intermediate calculations. Round your...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (10%) (35%) 0.2 3 0 0.3 11 19 0.3 19 27 0.1 32 47 Calculate the expected rate of return, rB, for Stock B (rA = 11.80%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 21.10%.) Do not round intermediate calculations. Round your...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability...
EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (7%) (26%) 0.2 5 0 0.3 10 24 0.3 22 28 0.1 33 40 Calculate the expected rate of return, rB, for Stock B (rA = 13.20%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 18.62%.) Do not round intermediate calculations. Round your...
Stocks A and B have the following probability distributions of expected future returns: Probability A B...
Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.2 (7%) (37%) 0.2 4 0 0.2 13 19 0.3 18 27 0.1 38 48 Calculate the expected rate of return, , for Stock B ( = 11.20%.) Do not round intermediate calculations. Round your answer to two decimal places.   % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 26.62%.) Do not round intermediate calculations. Round your answer to...
Stocks A and B have the following probability distributions of expected future returns: Probability A B...
Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.3 (15%) (30%) 0.2 3 0 0.2 11 20 0.1 24 26 0.2 33 40 Calculate the expected rate of return, , for Stock B ( = 7.30%.) Do not round intermediate calculations. Round your answer to two decimal places.   % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 26.58%.) Do not round intermediate calculations. Round your answer to...
Stocks A and B have the following probability distributions of expected future returns: Probability     A     B...
Stocks A and B have the following probability distributions of expected future returns: Probability     A     B 0.1 (9 %) (30 %) 0.2 6 0 0.5 12 22 0.1 21 26 0.1 32 47 Calculate the expected rate of return,  , for Stock B ( = 11.60%.) Do not round intermediate calculations. Round your answer to two decimal places.   % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 19.66%.) Do not round intermediate calculations. Round your answer...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT