1. Consider the following two probability distributions for sales: Distribution 1 Distribution 2 Sales probability probability (thousands...
Question:
1. Consider the following two probability distributions for sales:
Distribution 1 Distribution 2 Sales probability probability
(thousands of units) (percent) (percent)
50 10 10 60 20 15 70 40 20 80 20 30 90 10 25
a. Graph the two distributions shown in the table. What are the expected sales for the two probability distributions?
b. Calculate the variance and standard deviation for both distributions. Which distribution is more risky?
c. Calculate the coefficient of variation for both distributions. Which distribution is more risky relative to its mean?
Step by Step Answer:
Related Book For
Managerial Economics
ISBN: 9780073375915
10th Edition
Authors: Christopher R Thomas, S Charles Maurice
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