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5. Based on Problem 10-8 Sales and profits for a new product are uncert certain. The marketing department has predicted that the most likely number
5. Based on Problem 10-8 Sales and profits for a new product are uncert certain. The marketing department has predicted that the most likely number of sales is 10,000 units per year, and the manufacturing department estimates that, at this level of sales, profit per unit sold would be $22. The departments have created alternative projections: sales might be as high as 13,000 units a year with a profit per unit sold of $18, with a probability of 20%. Sales might instead be as low as 7.500 units per year with a profit per unit sold of $25, with a probability of 15%. 2) Construct a table of probability distributions. Include the probability, total sales #s, profit per unit sold, and total 5 sold for each possible outcome. 6) Based on this distribution, calculate the expected value of total sales in dollars per year. 5. Based on Problem 10-8 Sales and profits for a new product are uncert certain. The marketing department has predicted that the most likely number of sales is 10,000 units per year, and the manufacturing department estimates that, at this level of sales, profit per unit sold would be $22. The departments have created alternative projections: sales might be as high as 13,000 units a year with a profit per unit sold of $18, with a probability of 20%. Sales might instead be as low as 7.500 units per year with a profit per unit sold of $25, with a probability of 15%. 2) Construct a table of probability distributions. Include the probability, total sales #s, profit per unit sold, and total 5 sold for each possible outcome. 6) Based on this distribution, calculate the expected value of total sales in dollars per year
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