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Withstand a major storm

There chance of the condo not being able to withstand a major storm is .008 and because there is a storm every year, the condo will endure 25 storms during the mortgage. .008 * 25 = .2, meaning there is a 20% chance the condo will incurr major damage. 20% of 25 years is 5 so its design life is 5 years.

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## Q : Formula for a variance

In the formula for a variance, what is the sum if we dont square the (x-u) values? Hint: there is a special name for this sum.