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

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Consider The Two Options In The Following Table Both Of Which Have Random Outcomes Option 1 Probability Possible Outco 1 (52.47 KiB) Viewed 14 times

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