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Hooper Chemical Company, a major chemical firm that uses such raw materials as carbon and petroleum as part of its production process, is examining a
Hooper Chemical Company, a major chemical 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 | $ | 35 | 0.2 | |||
Normal economy | 40 | 0.2 | ||||
Strong economy | 50 | 0.6 | ||||
Compute the expected value, standard deviation, and coefficient of variation prior to the acquisition
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