Ch12Q1

Consider the two options in the following table, both of which have random outcomes: a. Determine the expected value of each option. Expected value of Option 1: \$ Expected value of Option 2: \$ b. Determine the variance and standard deviation of each option. Instructions: Round your answers for standard deviation to two decimal places. Variance of Option 1: Standard deviation of Option 1: Variance of Option 2: Standard deviation of Option 2 : c. Which option is most risky? Option 1 Option 2