Pabst Dental Supplies is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of occurrence are given. Possible Market Reaction Low response Moderate response. High response Very high response Sales in Units 10 25 40 65 Probabilities 0.30 0.20 0.30 0.20 a. What is the expected value of unit sales for the new product? Expected value b. What is the standard deviation of unit sales? (Round the final answer to 2 decimal places.) Standard deviation
Pabst Dental Supplies is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of occurrence are given. Possible Market Reaction Low response Moderate response. High response Very high response Sales in Units 10 25 40 65 Probabilities 0.30 0.20 0.30 0.20 a. What is the expected value of unit sales for the new product? Expected value b. What is the standard deviation of unit sales? (Round the final answer to 2 decimal places.) Standard deviation
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Pabst Dental Supplies is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of
occurrence are given.
Possible Market Reaction
Low response
Moderate response
High response
Very high response
Sales
in Units.
10
25
40
65
Probabilities
0.30
0.20
0.30
0.20
a. What is the expected value of unit sales for the new product?
Expected value
b. What is the standard deviation of unit sales? (Round the final answer to 2 decimal places.)
Standard deviation](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb8cd65e-f4bf-416e-b275-0e254fa224af%2F221d60dc-c861-43cb-87fe-8b9ce866349f%2Fuevh1h4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pabst Dental Supplies is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of
occurrence are given.
Possible Market Reaction
Low response
Moderate response
High response
Very high response
Sales
in Units.
10
25
40
65
Probabilities
0.30
0.20
0.30
0.20
a. What is the expected value of unit sales for the new product?
Expected value
b. What is the standard deviation of unit sales? (Round the final answer to 2 decimal places.)
Standard deviation
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