Sampson Corp. Is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are shown next: Possible Market Reaction Low response Moderate response Bigh response Very high response Sales in Units 60 80 100 120 Expected value 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.) Probabilities 0.20 0.30 0.30 0.20 units

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
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Sampson Corp. Is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their
occurrence are shown next:
Possible
Market Reaction
Low response
Moderate response
Bigh response
Very high response
Expected value
Sales
in Units
60
80
100
120
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
units
Probabilities
0.20
0.30
0.30
0.20
H
b. What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
units
1 of 8
RE
Next >
Liones reale.P
Transcribed Image Text:Sampson Corp. Is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are shown next: Possible Market Reaction Low response Moderate response Bigh response Very high response Expected value Sales in Units 60 80 100 120 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 units Probabilities 0.20 0.30 0.30 0.20 H b. What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.) units 1 of 8 RE Next > Liones reale.P
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