Use the following two probability distributions for sales of a firm

-Which distribution is more risky?
A) Distribution 1 has a higher variance than Distribution 2, so Distribution 1 is more risky.
B) Distribution 2 has a higher variance than Distribution 1, so Distribution 2 is more risky.
C) Distribution 2 has a larger standard deviation than Distribution 1, so Distribution 2 is more risky.
D) both a and c

Question

Use the following two probability distributions for sales of a firm 
 
-Which distribution is more risky?
A) Distribution 1 has a higher variance than Distribution 2, so Distribution 1 is more risky. 
B) Distribution 2 has a higher variance than Distribution 1, so Distribution 2 is more risky. 
C) Distribution 2 has a larger standard deviation than Distribution 1, so Distribution 2 is more risky. 
D) both a and c

Quizplus · Accepted Answer

The Answer of Use the following two probability distributions for sales of a firm 
 
-Which distribution is more risky?
A) Distribution 1 has a higher variance than Distribution 2, so Distribution 1 is more risky. 
B) Distribution 2 has a higher variance than Distribution 1, so Distribution 2 is more risky. 
C) Distribution 2 has a larger standard deviation than Distribution 1, so Distribution 2 is more risky. 
D) both a and c

Use the Following Two Probability Distributions for Sales of a Firm