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Use the Following Two Probability Distributions for Sales of a Firm

Question 37

Multiple Choice

Use the following two probability distributions for sales of a firm to answer the following question: Use the following two probability distributions for sales of a firm to answer the following question: Which distribution is more risky? A) Distribution 1 has a higher variance than Distribution 2,so Distribution 1 is more risky. B) Distribution 2 has a higher variance than Distribution 1,so Distribution 2 is more risky. C) Distribution 2 has a larger standard deviation than Distribution 1,so Distribution 2 is more risky. D) both b and c Which distribution is more risky?


A) Distribution 1 has a higher variance than Distribution 2,so Distribution 1 is more risky.
B) Distribution 2 has a higher variance than Distribution 1,so Distribution 2 is more risky.
C) Distribution 2 has a larger standard deviation than Distribution 1,so Distribution 2 is more risky.
D) both b and c

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