.  Midland is a successful nursery, is considering several expansion projects. All the alternatives promise to produce an acceptable return. Data on four possible projects follow.   Project Expected return Range Standard deviation                 A    12.0% 4.0% 2.9%   B 12.5 5.0 3.2     C 13.0 6.0 3.5     D 12.8 4.5 3.0                     Which project is least risky, judging based on range?   Which project has the lowest standard deviation? Explain why standard deviation an entirely appropriate measure of risk for purposes of this comparison may not be.   Calculate the coefficient of variation for each project. Which project do you think Greengage’s owners should choose? Explain why.

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Question

.  Midland is a successful nursery, is considering several expansion projects. All the alternatives promise to produce an acceptable return. Data on four possible projects follow.

 

Project

Expected return

Range

Standard deviation

 

 

 

 

 

 

 

 

A

   12.0%

4.0%

2.9%

 

B

12.5

5.0

3.2

 

 

C

13.0

6.0

3.5

 

 

D

12.8

4.5

3.0

 

             

 

 

  1. Which project is least risky, judging based on range?

 

  1. Which project has the lowest standard deviation? Explain why standard deviation an entirely appropriate measure of risk for purposes of this comparison may not be.

 

  1. Calculate the coefficient of variation for each project. Which project do you think Greengage’s owners should choose? Explain why.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Point Estimation, Limit Theorems, Approximations, and Bounds
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman