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Condition Amount Probability Amount* Prob Boom 400000 0.4 160000 Moderate Growth 300000 0.3 90000 Ree!!ion 100000 0." "0000 #e$re!!ion %&00000 0.10 %&0000 Mean' (um o) Amount * Probability )or eah o) the ondition 400000*0.4+,30000 0*0.3+,100000*0." +,%&00000*.10+ 160000,90000,"0000%&0000-""0000 (tandard deiation Co nd it io n Amoun t Mean Amount % Mean Amt% Mean+/" Probab ilit y Amo unt * Prob Boom 400000 ""0000 10000 3"4*10/ 0.4 1"9.6*10/ Moderate Growth 300000 ""0000 0000 64*10/ 0.3 19."*10/ Ree!!ion 100000 ""0000 %1"0000 144*10/ 0." ".*10/ #e$re! !i on % &00000 "" 0000 % 0000 &1 4 *1 0/ 0.10 &1.4*10/ 2a ri an e 696 *1 0/ (tandard #eiation (R o) 696.*10/- "631
description
Maths
Transcript of 52
ConditionAmountProbabilityAmount* Prob
Boom4000000.4160000
Moderate Growth3000000.390000
Recession1000000.220000
Depression-5000000.10-50000
Mean: Sum of Amount * Probability for each of the condition
(400000*0.4)+(300000*0.3)+(100000*0.2)+(-500000*.10)
160000+90000+20000-50000=220000
Standard deviation
ConditionAmountMeanAmount - Mean(Amt-Mean)^2ProbabilityAmount* Prob
Boom400000220000180000324*10^80.4 129.6*10^8
Moderate Growth3000002200008000064*10^80.319.2*10^8
Recession100000220000-120000144*10^80.228.8*10^8
Depression-500000220000-7700005184*10^80.10518.4*10^8
Variance696*10^8
Standard Deviation
SQRT of 696.*10^8= 263818
