Variance and Standard Deviation - Penn Math
wins but the second player gets $3 if she wins. No one gets payed if 4 white balls are chosen. We have seen that the payout and probabilities for the rst player are: Payout Probability 2 8 15 0 1 15 3 6 15 The expected value was = 2 15. What is the variance? Alternative formula for variance: ˙2 = E(X2) 2. Why? E((X )2) = E(X2 2 X + 2) = E(X2 ...
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