Bar Charts and Risk Good Door Company plans to launch two new lines of composite security doors. Because of the highly competitive nature of the industry, the two lines of doors have been given code names, Mokka and Corsa. Good Door’s market research has established the forecasts below.

Use the table to:

a. Construct a bar chart for each range’s annual rate of return.

b. Calculate the average return for each range.

c. Comment on the relative riskiness for each door range’s rate of return using the bar chart.

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Market acceptance Excellent Good Average Poor Very poor Probability 0.1 0.2 0.5 0.15 0.05 Annual rate of return Mokka Corsa 0.1500 0.1625 0.1350 0.1475 0.0800 0.0850 0.0250 0.0125 0.0100 0.0075