1.The demand for MICHTEC's products is related to the state of the economy. If the economy is expanding next year (an above-normal growth in GNP), the company expects sales to be $200 million. If next year is normal (a moderate growth in GNP), sales are expected to be $125 million. If there is a recession next year (a decline in GNP), sales are expected to be $75 million. MICHTEC's economists have estimated the chances that the economy will be either expanding - probability is 10% or 0.1, normal - probability is 60% or 0.6, or in a recession next year - probability is 30% or 0.30.

a.Compute expected value for annual sales.

b.Calculate the standard deviation of that estimate