Suppose an individual is considering an investment in which
Suppose an individual is considering an investment in which there are exacty given below Outcome Probability ayots 0.3 $100 50 02 The expected value of the investment is $25. Although all the information is correct, information is missing Refer to Scenario 4. What is the deviation of outcome A? O A. 50 O B. 75 OC, 30 O D. 100 Click to select your answer ?
Solution
Deviation of outcome A= (payoff of A) - (expected value of in vestment)
= 100 - 25
=. 75
