How do you find the expected value given the mean and standard deviation?
For each value x, multiply the square of its deviation by its probability. (Each deviation has the format x – μ). The mean, μ, of a discrete probability function is the expected value. The standard deviation, Σ, of the PDF is the square root of the variance.
What is the expected value of playing the game once?
Expected value is a measure of what you should expect to get per game in the long run. The payoff of a game is the expected value of the game minus the cost.
What is fair price of a share?
Fair value is the sale price agreed upon by a willing buyer and seller. The fair value of a stock is determined by the market where the stock is traded. Fair value also represents the value of a company’s assets and liabilities when a subsidiary company’s financial statements are consolidated with a parent company.
Is the right pricing a fair price?
Originally Answered: Is the Right Price a Fair Price? Of course NO. In economics, there is something called externalities which could be both positive and negative. They will thus influence the true value of a commodity.
What happens when the price isn’t right?
1 Section 3 – What Happens When the Price Isn’t “Right”? *the “right” price because it is the price that producers and consumers can agree on. *When disequilibrium occurs in a market, the quantity demanded is no longer equal to the quantity supplied. The result is either a shortage or a surplus.
What happens when demand decreases and supply decreases?
A decrease in demand will cause the equilibrium price to fall; quantity supplied will decrease. An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
What can cause an increase in supply?
An increase in supply can be caused by:
- an increase in the number of producers.
- a decrease in the costs of production (such as higher prices for oil, labor, or other factors of production).
- weather (e.g., ideal weather may increase agricultural production)