Construct probability distributions for sales-unit profits

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Sales and profits for a new product are uncertain. The predicted sales may be as high as 10,000 units per year with a probability of 10%. The most likely value is 7,000 units per year. The pessimistic value is estimated to 5,000 units per year with a probability of 20%. Manufacturing and marketing together have estimated the most likely unit profit is to be $32. The pessimistic value of $24 has a probability of 0.3, and the optimistic value of $38 has a probability of 0.2. Construct the probability distributions for sales and unit profits.

Reference no: EM13770151

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