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A firm that uses such raw materials as carbon and petroleum as part of its production process, is examining a plastics firm to add to
A firm that uses such raw materials as carbon and petroleum as part of its production process, is examining a plastics firm to add to its operations. Before the acquisition, the normal expected outcomes for the firm were as follows:
Outcomes ($ millions) | Probability | |||||
Recession | $ | 20 | 0.30 | |||
Normal economy | 40 | 0.40 | ||||
Strong economy | 60 | 0.30 | ||||
Compute the expected value, standard deviation, and coefficient of variation prior to the acquisition.
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