Compute the coefficient of variation

Assignment Help Business Economics

Reference no: EM138604

Q. A firm is considering two business projects. Project A will return a loss of $45 if conditions are poor, a profit of $35 if conditions are good, and a profit of $155 if conditions are excellent. Project B will return a loss of $100 if conditions are poor, a profit of $60 if conditions are good, and a profit of $300 if conditions are excellent. The probability distribution of conditions follows:
Conditions: Poor Good Excellent
Probabilities: 40% 50% 10%

(i) Compute the expected value of each project and classify the preferred project according to this criterion.

(ii) Compute the standard deviation of each project and Classify the project that has the higher level of risk.

(iii) Compute the coefficient of variation for each project and Classify the preferred project according to this criterion.

Reference no: EM138604

Questions Cloud

What is the resulting average force on that helicopter : A 9.0 cm diameter wire coil is at first oriented so that its plane is perpendicular to a magnetic field of 0.67 T pointing up. During the course of 0.30 s, the field is changed to one of 0.25 T pointing down. What is the average induced emf in coil.

Optimal output before and after the tax : What effect did the tax have on LeAnn's output level. How LeAnn's did profits change.

What is the decibel level of street : On a workday an average decibel level of the busy street is 89 dB, with 100 cars passing a given point every minute. If the number of cars is reduced to 30 every minute on a weekend, what is the decibel level of street.

Compute the deadweight loss : Compute the deadweight loss if the U.S. imposes a tariff of 25 cents per bottle of imported wine.

Compute the coefficient of variation : Compute the coefficient of variation for each project and Classify the preferred project according to this criterion.

Find the tension in each wire : The 3.3 kg piece of wood slides on the surface. The curved sides are perfectly smooth, but the rough horizontal bottom is 35 m long and has the kinetic friction coefficient of 0.24 with the wood. The piece of wood starts from rest 6.0 m above the rou..

Describe the discretionary and non-discretionary : Describe the Discretionary and Non-discretionary Fiscal Policy you would advise

Compute the length of the cables supporting the trapeze : A man pushes a lawnmower for 13.1 m along a handle that makes a 28.2° angle with the ground. He pushes with a force of 42.8 N even as the force of friction between the lawnmower and the ground is 13.7 N.

What is the work completed on the man : A 79.0 kg man is riding in a shopping mall. The escalator moves the man at constant velocity from ground level to the floor above, the vertical height of 4.40m.What is the work completed on the man by the gravitational force and the escalator.

User Account

All Pages