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Profit (in $millions) if Demand isOutput Level Weak Strong1 million units 60 1751.5 million units 50 2002.0 million units â?"50 400
2. Now Assume that management believes probability of weak demand in 2012 is 25 percent and the probability of strong demand is 75%. Compute the expected profit,variance, standard deviation, and coefficient of variation for each level of output:
Output1 million units ______ _____ ________ ________1.5 million units ________ ________ ________ ________2.0 million units ________ ________ ________ ________
3. Based on the expected value rule, Star Products should produce ________ units in2012.
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