Calculate the expected value of unit sales

Assignment Help Finance Basics

Reference no: EM1358925

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 below:
Possible Market Reaction Sales in Units Probabilities
Low response 20 .10
Moderate response 40 .30
High response 55 .40
Very high response 70 .20
a. What is the expected value of unit sales for the new product?
b. What is the standard deviation of unit sales?

Reference no: EM1358925

Questions Cloud

Draw a gui to create objects : Draw a GUI that will create the objects and provide access to each object's processing methods. Use the drawing tool in Microsoft Word.

What is the childs total mechanical energy : A 25 kg child on a 2.0 m swing is released from rest when the swing supports make the angle of 30.0 degrees with the vertical.

Adapting organizational development interventions : How would you describe how OD (organizational development practitioner) interventions need to be adapted to fit different cultural contexts.

Introduction of implicit learning : Implicit learning is described as acquiring knowledge through exposure; learning about things unintentionally and indirectly.

Calculate the expected value of unit sales : Myers Business Systems is estimating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given below:

Deduction for qualifying five-year equipment : Elaine owns an unincorporated manufacturing business. In 2011, she purchases and places in service $250,000 of qualifying five-year equipment for use in her business. Her taxable income from the business before any section 179 deduction is $70,000..

Business management - the appraisal process : Do you agree with the observation that managers are tempted to just get the appraisal process over with and possibly take care of the appraisal through e-mail?

What is the acceleration of two falling sky divers : What is the acceleration of two falling sky divers. Some European trucks run on energy stored in a rotating flywheel, with an electric motor getting flywheel up to its top speed of 440 π rad/s. One such flywheel is a solid, uniform cylinder with a ..

Depreciation deductions-accelerated depreciation : In November 2011, Kendall purchases a computer for $4,000. She does not use Sec. 179. She only uses the most accelerated depreciation method possible.

User Account

All Pages