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MathsTRANSCRIPT
ConditionAmountProbabilityAmount* Prob
Boom4000000.4160000
Moderate Growth3000000.390000
Recession1000000.220000
Depression-5000000.10-50000
Mean: Sum of Amount * Probability for each of the condition
(400000*0.4)+(300000*0.3)+(100000*0.2)+(-500000*.10)
160000+90000+20000-50000=220000
Standard deviation
ConditionAmountMeanAmount - Mean(Amt-Mean)^2ProbabilityAmount* Prob
Boom400000220000180000324*10^80.4 129.6*10^8
Moderate Growth3000002200008000064*10^80.319.2*10^8
Recession100000220000-120000144*10^80.228.8*10^8
Depression-500000220000-7700005184*10^80.10518.4*10^8
Variance696*10^8
Standard Deviation
SQRT of 696.*10^8= 263818