MGT411- ASSIGNMENT SOLUTION 1 FALL2018

CASE 1 SOLUTION:

Expected Value:

E(X)        =             (800*1/2)+(1600)1/2)

                =             400+800 = 1200

Variance

                =             (800-1200)2*1/2+(1600-1200)2  *1/2

                =             (-400)2 *1/2 +(400)2  *1/2

                =             160000*1/2   +   160000*1/2

                =             80000+8000        = 160000

STANDARD DEVIATION:

AFTER TAKING SQUARE ROOT OF VARIANCE:

ANSWER WILL BE 400

CASE 2 SOLUTION:

Expected Value:

E(X)        =             (1600*1/2)+(3200)1/2)

                =             800+1600 = 2400

Variance

                =             (1600-2400)2*1/2+(3200-2400)2  *1/2

                =             (-800)2 *1/2 +(800)2  *1/2

                =             640000*1/2   +   640000*1/2

                =             320,000+320,000               = 640,000

STANDARD DEVIATION:

AFTER TAKING SQUARE ROOT OF VARIANCE:

ANSWER WILL BE 800

MGT411-SOLUTION ASSIGNMENT NO 1 FALL2018.docx