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Mean profit and standard deviation of profit

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Gabelli Partners is planning a major investment. The amount of profit X is uncertain but a probabilistic estimate gives the following distribution (in millions of dollars):

Profit             1,   1.5,   2,    4,   10

Probability  0.1, 0.2,  0.4,  ??,   0.1 

a. Find P(X = 4) = 0.2

b. Find the mean profit and the standard deviation of the profit.

c. Gabelli Partners owes its source of capital a fee of $200,000 plus 10% of the profits X. So thefirm actually retains Y = 0.9X - 0.2 from the investment. Find the mean and standard deviation of Y

Reference no: EM131099495

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