Fox River Company is analyzing a new line of business and estimates the possible return on investments as; Probability 0.1 0.2 0.4 0.2 0.1 Possible -10% 5% 20% 35% 50% returns a) What is the expected return and standard deviation . b) Assume that the parameters in part appertain to a normal probability distribution. What is the probability the return will be i) Zero or less ii) Less than 10 percent iii) More than 40 percent
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Fox River Company is analyzing a new line of business and estimates the possible return on investments as;
Possible -10% 5% 20% 35% 50%
returns
a) What is the expected return and standard deviation .
b) Assume that the parameters in part appertain to a
i) Zero or less
ii) Less than 10 percent
iii) More than 40 percent
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