Question
City Supplies Inc. expects sales next year to be $16,200,000 if the economy is very strong, $14,400,000 if the economy is moderately strong, $10,800,000 if
City Supplies Inc. expects sales next year to be $16,200,000 if the economy is very strong, $14,400,000 if the economy is moderately strong, $10,800,000 if the economy is steady, and $4,640,000 if the economy is weak. The company believes there is a 15 percent probability the economy will be very strong, a 25 percent probability that the economy will be relatively strong, a 50 percent probability that the economy will be steady, and a 10 percent probability of a weak economy. What is the expected level of sales for next year? Please show your work.
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