Question

A multinational company invests a certain amount of dollars in a project. The following table lists all the possible future returns ($, in millions) associated with the respective probabilities.

Let X represent the returns ($, in millions) in this random process. Calculate the population standard deviation σ of X ($, in millions). (keep two decimals)

	Scenario 1	Scenario 2	Scenario 3	Scenario 4	Scenario 5	Scenario 6	Scenario 7
Possible returns, Xi	14.33	-8.98	14.77	-12.18	10.27	-8.95	-9.39
Probability, pi	15.25%	7.50%	13.55%	16.75%	10.50%	18.05%	18.40%

Group of answer choices

9.73

23.67

2.97

11.53

Answer 1

X	P(X)	X.P(X)	X².P(X)
14.33	0.1525	2.185325	31.31570725
-8.98	0.0750	-0.6735	6.04803
14.77	0.1355	2.001335	29.55971795
-12.18	0.1675	-2.04015	24.849027
10.27	0.1050	1.07835	11.0746545
-8.95	0.1805	-1.615475	14.45850125
-9.39	0.1840	-1.72776	16.2236664
Total	1	-0.791875	133.5293044

Standard deviation, σ = √[Ʃ(X².P(X)) - μ²] = √(133.52930435 - (-0.791875)²) = 11.53