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Compute the expected value

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Reference no: EM133051073

Question - Hooper Chemical Company, a major chemical firm that uses such raw materials as carbon and petroleum as part of its production process, is examining a plastics firm to add to its operations. Before the acquisition, the normal expected outcomes for the firm were as follows:

 

Outcomes ($ millions)

Probability

Recession

$10

0.4

Normal economy

20

0.2

Strong economy

30

0.4

Required - Compute the expected value, standard deviation, and coefficient of variation prior to the acquisition.

Reference no: EM133051073

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