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Two different designs on a new line of summer T-shirts for the coming summer are available for your manufacturing plants. Your profit (in thousands of

Two different designs on a new line of summer T-shirts for the coming summer are available for your manufacturing plants. Your profit (in thousands of dollars) will depend on the taste of the consumers when summer arrives. The probability of the three possible different tastes of the consumers and the corresponding profits are presented in the following table.

Hint Discrete Probability Table 5-8

Probability

Taste

Design A

Design B

0.2

more conservative

180

520

0.5

no change

230

310

0.3

more liberal

350

270


  1. 6) Referring to Table 5-8, what is the variance of your profit when Design A is chosen?

2 Referring to Table 5-8, which design has the better Standard Deviation and why?

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