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 Sales in Units Probabilities Low response 25 0.20 Moderate response 30 0.10 High response 50 0.10 Very high response 70 0.60 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.) Expected value units b. What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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 Sales in Units Probabilities Low response 25 0.20 Moderate response 30 0.10 High response 50 0.10 Very high response 70 0.60 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.) Expected value units b. What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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
Sales in
Units
Probabilities
Low response
25
0.20
Moderate response
30
0.10
High response
50
Very high response
70
0.10
0.60
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.)
Expected value
units
b. What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Standard deviation
units
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