Computation of expected value and standard deviation

Reference no: EM1311197

Computation of expected value and standard deviation.

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	0.1
Moderate response	40	0.3
High response	55	0.4
Very high response	70	0.2

a) What is the expected value of unit sales for the new product?

b) What is the standard deviation of unit sales?

Reference no: EM1311197

Questions Cloud

Find weight percent austenite & weight percent proeutectoid : A 0.65 percent C hypoeutctoid plain carbon steel is slowly cooled from about 950°C to a temperature just slightly above 723°C. calculate the weight percent austenite and weight percent proeutectoid ferrite in this steel. Explain it.

Monopoly pricing and elasticity : Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.

Determine the predetermined overhead rate : Determine the pre determined overhead rate from the given data - determine the predetermined overhead rate.

Cartel behavior in coal industry : Assume that the soft coal industry is a competitive industry and it is in long run equilibrium. Now assume that the firms in the industry form a cartel.

Computation of expected value and standard deviation : Computation of expected value and standard deviation and What is the expected value of unit sales for the new product

Balanced chemical equations : Write balanced chemical equations for the following reactions.

Impact of this difference on reported net operating income : Describe the reason for any difference in the ending inventory balances under the two costing methods and the impact of this difference on reported net operating income.

Long run behavior of monopolistic competitive firms : Mention the four assumptions for the Monopolistic competition model.

Variable and absorption costing unit : Variable and absorption costing unit product costs and income statement; Explanation of Difference in Net Operating Income

User Account

All Pages