You are a hotel manager, and are considering four projects that yield different payoffs, depending upon whether there is an economic boom or recession.The potential payoffs and corresponding payoffs are summarized in the following table.

-The variance in the returns of project A is

Question

You are a hotel manager, and are considering four projects that yield different payoffs, depending upon whether there is an economic boom or recession.The potential payoffs and corresponding payoffs are summarized in the following table.
 
-The variance in the returns of project A is

Quizplus · Accepted Answer

Variance is calculated as the average of the squared deviations from the mean. The value 225 is likely the result of such a calculation for project A's returns.

You Are a Hotel Manager, and Are Considering Four Projects