Expected Value and Standard Deviation
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Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given below:
Possible Sales
Market Reaction in Units Probabilities
Low response . . . . . . . . . . . . . 20 .10
Moderate response . . . . . . . . . 40 30
High response . . . . . . . . . . . . . 55 .40
Very high response . . . . . . . . . 70 .20
a. What is the expected value of unit sales for the new product?
b. What is the standard deviation of unit sales?
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This solution is comprised of a detailed explanation to calculate what is the expected value of unit sales for the new product and what is the standard deviation of unit sales.
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Expected Value and Standard Deviation
Myers Business Systems is evaluating the introduction of a new product. The
possible levels of unit sales and the probabilities of their occurrence are given
below:
Possible Sales
Market Reaction in Units Probabilities
Low response . . . . . . ...
Purchase this Solution
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