Question

Mary is deciding whether to book the cheaper flight home college after her final exams, but she's unsure when her last exam will be. She thinks there is only a 20% chance that the exam will be scheduled after the last day she can get a seat on the cheaper flight. If it is and she has to cancel the flight, she will lose $150. If she can take the cheaper flight, she will save $100.

a) If she books the cheaper flight, what can she expect to gain, on average?
b) What is the standard deviation?
The answer is a) $50 b) $100, but I do not know how this is gotten. Please help.

Answer 1

she will gain 50 so

she will lose 150 if she stays but if she leaves she will save 100 so

-150+100=-50

i don't realy get the standard devition part ive heard of it but i don't rly know what it is

Hope This Helps!!!