Organic spinach > Net Return = Price Quantity Cost >NR=PCC Keep it simple >P,Q, and C are independent > There are only two possible outcomes for NR - 8 different possible outcomes for NR 222 states of nature Probability of Outcomes A. Prepare a table showing the probability distributions of net returns. B. Draw the cumulative distribution function (CDF) from the probability distribution in part A (it would be helpful top use Excel). From the CDF, report what the probability will be that net returns will be less than zero. C. Calculate the mean, variance, standard deviation, and coefficient of variation. There is roughly a 60% chance that net returns will be less than There is roughly a 20% chance that net returns will be greater than What is the variance? ANSWER: What is the standard deviation? ANSWER: What is the coefficient of variation