Question
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 | $ | 40 | .2 | |||
Normal economy | 50 | .4 | ||||
Strong economy | 80 | .4 | ||||
Compute the expected value, standard deviation, and coefficient of variation prior to the acquisition. (Do not round intermediate calculations. Enter your dollar answers in millions rounded to 2 decimal places (e.g., $12,300,000 should be entered as "12.30"). Round the coefficient of variation to 3 decimal places.)
a. Expected Value: Million
b. Standard Deviation: Million
c. Coeffiecient of Variation:
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