Consider the two options in the following table, both of which have random outcomes: Option 1 Probability of Outcome 0.0

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Consider The Two Options In The Following Table Both Of Which Have Random Outcomes Option 1 Probability Of Outcome 0 0 1 (140.06 KiB) Viewed 26 times

Consider the two options in the following table, both of which have random outcomes: Option 1 Probability of Outcome 0.06 0.25 0.38 0.25 0.06 Possible Outcomes ($) 150 400 750 200 150 Variance of Option 2: Probability of Outcome Standard deviation of Option 2: a. Determine the expected value of each option. Expected value of Option 1: $ Expected value of Option 2: $ c. Which option is most risky? Option 1 Option 2 1/5 1/5 1/5 1/5 1/5 b. Determine the variance and standard deviation of each option Instruction: Round your answers for standard deviation to 2 decimal places. Variance of Option 1: Standard deviation of Option 1: Option 2 Possible Outcomes ($) 120 255 1,500 255 120