34) The Oklahoma Pipeline Company projects the following pattern of inflows from an investment. The inflows are...

80.2K

Verified Solution

Question

Finance

34)

The Oklahoma Pipeline Company projects the following pattern ofinflows from an investment. The inflows are spread over time toreflect delayed benefits. Each year is independent of theothers.
  

Year 1Year 5Year 10
Cash InflowProbabilityCash InflowProbabilityCash InflowProbability
$650.40$500.35$400.30
800.20800.30800.40
950.401100.351200.30


The expected value for all three years is $80.

Compute the standard deviation for each of the three years.(Do not round intermediate calculations. Round your answerto 2 decimal places.)
  

Answer & Explanation Solved by verified expert
3.7 Ratings (558 Votes)
Solution Standard Deviation for Year 1 134164 1342 when rounded off to    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students