Question
Alderan Toy Store faces the following probability distribution of fire losses in its store over the next year: Probability .83 .15 .02 Loss 0 10,000
Alderan Toy Store faces the following probability distribution of fire losses in its store over the next year:
Probability | .83 | .15 | .02 |
Loss | 0 | 10,000 | 25,000 |
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H, Calculate the expected value and standard deviation of Alderans losses for the year.
I) Assume that Alderan pools his losses with Dagobahs store, which has an identical loss distribution. Dagobahs losses are independent of Alderans. Alderan and Dagobah agree to split the total losses in the pool equally. Show the revised probability distribution for the mean loss from the pool.
J) Calculate the expected value and standard deviation of the pooled mean losses.
H) Probability Loss Expected Value of Loss Column 1 Loss outcomes Column 2 Column 3 Probabilities Loss Outcome Expected Loss Squared Difference Squared Difference x Probability Column 4 Column 5 Variance Standard Deviation Alderan's Loss Dagobah's Los Total Loss Mean Loss Probability Expected Value of Loss Column 1 Loss outcomes Column 2 Column 3 Column 4 Column 5 Probabilities Loss Outcome Expected Loss Squared Difference Squared Difference x Probability Sum Variance Standard Deviation
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