Consider the two options, both of which have random outcomes:

Option 1:

Probability of Outcome/Possible Outcomes ($)

1/16 150

4/16 300

6/16 750

4/16 300

1/16 150

Option 2:

Probability of Outcome/Possible Outcomes ($)

1/5 120

1/5 255

1/5 1500

1/5 255

1/5 120

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.

Instruction:Round your answers for standard deviation to 2 decimal places.

Variance of Option 1:_____?

Standard deviation of Option 1:_____?

Variance of Option 2:_____?

Standard deviation of Option 2:______?