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Expected value of cash flow and revenue

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I. The Widget Company has estimated the following revenue possibilities for the year:

Sales Probability
100 0.15
150 0.20
220 0.30
290 0.20
310 0.15

Determine the expected value

II. The XYZ Company has estimated expected cash flows for 1996 to be as follows:

Probability Cash flow
.10 $120,000
.15 140,000
.50 150,000
.15 180,000
.10 210,000

Calculate the expected value

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Solution Summary

The solution calculates expected values, given probability distribution of sales and cash flow.

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The Widget Company has estimated the following revenue possibilities for the year:

Sales Probability
100 0.15
150 0.20
220 0.30
290 0.20
310 0.15

Determine the expected ...

Purchase this Solution
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