Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given next: Possible Market Reaction Low response Moderate response High response Very high response Sales in Units 25 40 70 85 Probabilities 0.20 0.40 0.20 0.20 a. What is the expected value of unit sales for the new product? (Do not round intermediate calculations and round your answer to the nearest whole unit.)
Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given next: Possible Market Reaction Low response Moderate response High response Very high response Sales in Units 25 40 70 85 Probabilities 0.20 0.40 0.20 0.20 a. What is the expected value of unit sales for the new product? (Do not round intermediate calculations and round your answer to the nearest whole unit.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their
occurrence are given next:
Possible Market Reaction
Low response
Moderate response
High response
Very high response
Expected value
Sales in
Units
25
40
70
85
a. What is the expected value of unit sales for the new product? (Do not round intermediate calculations and round your answer to
the nearest whole unit.)
Standard deviation
Probabilities
0.20
0.40
units
0.20
0.20
b. What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
units
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