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Can someone please help me understand why the calculation of Variance alternates between?
1) Sum (Loss^2) x Prob x (1-Prob)
2) Sum Prob x (Loss^2) – E[Loss]^2
Unless I am applying them wrong, they yield different answers but both have been used in exam solutions (e.g. Spring 2019 #1 uses formula 1 while Spring 2020 # 5 uses 2)……
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