let X represent the amount of winning money
probability distribution table-
|
X |
P(X) |
|
500 |
0.01 |
| 100 |
0.02 |
| 25 |
0.04 |
| 0 |
0.93 |
----------------
|
X |
P(X) |
X*P(X) |
X² * P(X) |
|
500 |
0.01 |
5.000 |
2500.0000 |
| 100 |
0.02 |
2.000 |
200.0000 |
| 25 |
0.04 |
1.000 |
25.0000 |
| 0 |
0.93 |
0.000 |
0.0000 |
|
|
P(X) |
X*P(X) |
X² * P(X) |
| total sum
= |
1 |
8 |
2725.00 |
mean = E[X] = ?x*P(X) =
8.0000
E [ X² ] = ?X² * P(X) =
2725.0000
variance = E[ X² ] - (E[ X ])² =
2661.0000
std dev = ?(variance) =
51.5849
so, standard deviation of loss = 51.5849
==========================
the probability distribution is skewed to right.
