College Finance Level 1 - Risk & Management

please show your work.

3. Pabst Dental Supplies is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of occurrence are given. Possible Market Reaction Low response Moderate response High response Very high response Sales in Units 35 45 60 70 Probabilities 20 .20 30 30 a. What is the expected value of unit sales for the new product? Expected value b. What is the standard deviation of unit sales? (Round the final answer to 2 decimal places.) Standard deviation