07_Discrete Probability Distributions Part 1

# 2 compute the variance of the profit when selling hot

• Notes
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2. Compute the variance of the profit when selling hot dogs. ∑x*p(x) = 90*0.1 + 70*0.3 + 45*0.4 + 15*0.2 = 51 Stdev(X) = √534 = 23.11 \$ Var[X] = (90-51)2(.1) + (70-51)2(.3) + (45-51)2(.4) + (15-51)2(.2) = 152.1 + 108.3 + 14.4 + 259.2 = 534 \$2 Var[X] = Σ (X - µx)2 P(x) Example: Selling hot dogs at Wells Fargo Center

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28 3. The employee has asked you for assistance. Which task would you pick (either working the concession stand or selling hotdogs) and why? Exp profit Std. dev. Stands Hot dogs \$50 0 (certain) \$51 \$23.11 Example: Selling hot dogs at Wells Fargo Center
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• Fall '12
• StephenD.Joyce
• Probability theory, discrete random variable

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