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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. Compute the standard deviation of annual sales.
c. Compute the coefficient of variation of annual sales.
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