Question
Perth Industries is conducting an evaluation of two of its future products, currently known within the company as Project H and Project J. The following
Perth Industries is conducting an evaluation of two of its future products, currently known within the company as Project H and Project J. The following table presents the yield and probability data obtained at the moment.
Project H
Performance % | Probability |
40 | 0.10 |
20 | 0.20 |
10 | 0.40 |
0 | 0.20 |
-20 | 0.10 |
Project J
Performance % | Probability |
5 | 0.35 |
40 | 0.05 |
10 | 0.20 |
3 | 0.40 |
What is the expected value of performance of Project H and Project J Perth Industries?
What is the standard deviation of the performance of project H and project J Perth Industries?
Which project would you recommend to Perth industries for investment and why?
Note : Please answer in a very well explain way with calculations and explanation for better understanding and LIKE
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