Quantitative Methods Q179
0. The probability distribution for the rate of return on a project is as follows:
| Probability | Rate of Return |
| 0.30 | 12.4% |
| 0.25 | 7.2% |
| 0.20 | 10.8% |
| 0.25 | 8.6% |
The variance for the above distribution is closest to:
- Option : B
- Explanation : α2 (X)= (0.30)(12.4−9.83)2+ (0.25)(7.2−9.83)2+ (0.20)(10.8−9.83)2+ (0.25)(8.60−9.83)2 = 4.28
