Sampson Corp. is evaluating the introduction of a new product. The possible levels of unit sales...

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Sampson Corp. is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of the

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Answer 1

Answer #1

Expected Value = 0.50 * 70 + 0.20 * 100 + 0.10 * 110 + 0.20 * 120
Expected Value = 90 units

Variance = 0.50 * (70 - 90)^2 + 0.20 * (100 - 90)^2 + 0.10 * (110 - 90)^2 + 0.20 * (120 - 90)^2
Variance = 440

Standard Deviation = (440)^(1/2)
Standard Deviation = 20.98 units

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Answer 2

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