Compute the expected profit,variance and standard deviation

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Reference no: EM1373072

Profit (in $millions) if Demand is
Output Level Weak Strong
1 million units 60 175
1.5 million units 50 200
2.0 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:

Output
1 million units ______ _____ ________ ________
1.5 million units ________ ________ ________ ________
2.0 million units ________ ________ ________ ________

3. Based on the expected value rule, Star Products should produce ________ units in
2012.

 

Reference no: EM1373072

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