Hey guys, just asking two things here: a) can you please explain to me how to calculate the variance of certain things and b), can you put it into practice by answering the question below? Thanks!
Baby Pty Ltd. is planning to launch a new brand of makeup product. Based on market research, if sales are high they can make a profit of $21.6 million per year. If sales are 'so so' they can make a profit of $5.4 million per year. Finally, if sales are low they can lose $2.9 million. The probabilities for the two profit scenarios are 0.55 and 0.22, respectively. Calculate the variance for the product.
Thanks and regards,