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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
$20
0.1
Normal economy
45
0.4
Strong economy
60
0.5
Required - Compute the expected value, standard deviation, and coefficient of variation prior to the acquisition.
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