Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

he demand for MICHTEC's products is related to the state of the economy. If the economy is expanding next year (an above-normal growth in GNP),

he demand for MICHTEC's products is related to the state of the economy. If the economy is expanding next year (an above-normal growth in GNP), the company expects sales to be $90 million. If there is a recession next year (a decline in GNP), sales are expected to be $75 million. If next year is normal (a moderate growth in GNP), sales are expected to be $85 million. MICHTEC's economists have estimated the chances that the economy will be either expanding, normal, or in a recession next year at 0.3, 0.5, and 0.2, respectively.

The expected annual sales is____million.

The standard deviation of annual sales is____ million.

The coefficient of variation of annual sales is ____.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Classics In Game Theory

Authors: Harold William Kuhn

1st Edition

1400829151, 9781400829156

More Books

Students also viewed these Economics questions

Question

What is the difference between risk aversion and loss aversion?

Answered: 1 week ago