Date post: | 24-Jun-2015 |
Category: |
Economy & Finance |
Upload: | yukondawn |
View: | 121 times |
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Tree diagram for the number of heads possible in 3 successive flips of a coin
Probability distribution for number of heads in 3 flips of a coin
Pg 221, #3 – mean number of credit cards owned by bank customers
Pg 221, #3 continued … standard deviation for the credit cards
Considering risk and reward, which is the better investment? Which one has the better expected value?
The expected value of Bond X is better than Bond Y, so Bond X has a better payoff for the risk involved.