Aproject has a 60% chance of doubling your investment in 1 year and a 40% chance of losing half your money. what is the standard deviation of this investment?

The standard deviation is 0.73 times the value of your investment

Explanation:

Standard deviation is the measure of dispersion from the mean of the group as a whole.

It is a group statistic, so it is necessary to see the project's result as a group result.

Let P be the value of your investment.

If you can invest 100 times in the project then after 1 year you will receive 2P for 60 times and 0.5P for 40 times. The 40% ad 60% information is not conditioned on a sample so the case should be considered a measurement on population.

Mean = =

Variance =

=

Standard Deviation = = = 0.73P

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.