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 their occurrence are shown next

JUST PART B!

business accounting

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Answer 1

Answer #1

Calculation of standard deviation
possible market reaction	sale unit (D)	probability (P)	(D-60)^2	(D-60)^2*p
Low response	20	0.4	1600	640
moderate	70	0.2	100	20
high	80	0.1	400	40
very high	100	0.3	1600	480
				1180
Standard deviation =		√1180
standard deviation		33.58
HERE 60 IS EXPECTED VALUE

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Answer 2

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