Solution-Which of the two promotion strategies is more risky

Which of the two promotion strategies is more risky

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Reference no: EM131118150

A software company has to decide which of two advertising strategies to adopt: TV commercials or newspaper ads. The marketing department has estimated that sales and their probability under each alternative plan are as given in the table below:

The firm's profit is 50 percent sales.

(a) Calculate the expected profit under each promotion strategy

(b) Calculate the standard deviation of the distribution of profits for each promotion strategy

(d) Which promotion strategy should the firmchoose?

Reference no: EM131118150

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Which of the two promotion strategies is more risky

Reference no: EM131118150

Reference no: EM131118150

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