What is the standard deviation of the net income estimate

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Reference no: EM13266712

The forecast for your firm indicates there's a 25% chance that Net Income will be $15,000, a 50% chance it will be $20,000, and a 25% chance it will be $25,000.

a. Given these conditions, what is the expected Net Income for your firm next year?

b. Given these conditions and your answer to part a, what is the standard deviation of the Net Income estimate?

c. Given your answers to parts a & b, what is the coefficient of variation (CV) of the net income estimate?

Reference no: EM13266712

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