When the variance of a probability distribution is $81,000 the risk equals:
A) $900
B) $6,561,000,000
C) $284.61
D) There is not enough information to calculate the risk.

Question

Quizplus · Accepted Answer

The risk cannot be directly calculated from the variance of the probability distribution. More information is needed, such as the expected value or standard deviation. Therefore, we cannot choose A, B, or D.

When the Variance of a Probability Distribution Is $81,000 the Risk