The probabilities that the life of a machine will vary from 6 to 12 years are given in the table below

Economics Dec 16, 2020

The probabilities that the life of a machine will vary from 6 to 12 years are given in the table below. Determine the expected life of the machine and the standard deviation (20 points) Life , Years5 6 7 8 9 10 11 12 Probability 0.100.150.20.150.200.100.050.05

Expert Solution

Pls see below

									Total
Life	5	6	7	8	9	10	11	12
Probability	0.100	0.150	0.200	0.150	0.200	0.100	0.050	0.050
Life*Probability	0.500	0.900	1.400	1.200	1.800	1.000	0.550	0.600	7.950	This is expected value
Expected value - Life	2.950	1.950	0.950	-0.050	-1.050	-2.050	-3.050	-4.050
Square of above	8.703	3.803	0.903	0.002	1.103	4.203	9.303	16.403	44.420
Above square / Number of observations									5.553
Square root of above									2.356	This is standard deviation

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