Calculate the standard deviation of annual sales

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Reference no: EM1349367

The demand for MICHTEC's products is related to the state of the economy. If the economy is expanding next year (an above normal growth in GDP), the company expect sales to be $90 million. If a recession occurs next year (a decline in GDP), sales are expected to be $75 million. If next year is normal (a moderate growth in GDP), sales are expected to be $85 million. MICHTEC's economists estimate the chances that the economy will be either expanding, normal, or in a recession next year at 0.3, 0.5, and 0.3 respectively.

a. Compute expected annual sales

b. Calculate the standard deviation of annual sales.

c. Calculate the coefficient of variation of annual sales.

Reference no: EM1349367

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