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Consider a Lottery with Four Equally Likely Outcomes, A, B

Question 51

Multiple Choice

Consider a lottery with four equally likely outcomes, A, B, C, and D. The associated payoffs are: $10, $30, $70, and $150, respectively. The variance of this lottery is


A) 2,875
B) 5,750
C) 8,625
D) 11,500

Correct Answer:

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