calculate the expected value of total sales revenue for each of the selling prices .

QUESTION 1 [Total: 9] A company is considering introducing a new product Market research suggests that the selling price per unit should be R24, R25 or R26. The marketing department has produced estimates of sales demand and their associated probabilities for each possible selling price. These estimates, based on pessimistic, likely and optimistic forecasts, are as follows: Selling price R24 R25 R26 Probability Probability Probability Sales demand Units 70 000 80 000 90 000 Sales demand Units 60 000 70 000 90 000 Sales demand Units 30 000 60 000 70 000 Pessimistic Likely Optimistic 0.2 0.5 0.3 0.1 0.6 0.3 0.3 0.4 0.3 Required:1 / Calculate the expected value of the total sales revenue for each of the selling prices