common 012308 fogel inequal-1

common 012308 fogel inequal-1 - max x min x 2 x , crunching...

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Fogelberg’s Inequality 2 ) min( ) max( ) ( x x x - σ This is a handy rule to know, and can help narrow down the  choices on a multiple choice exam without a lot of number  crunching.  Illustration: Think of the coin flip problem. If you have a 50- 50 chance of getting a NPV of either 20 or 10, then your  mean is 15 and your standard deviation is 5. Your standard 
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