Question
The company Glassigt AB is developing a new recipe for ice cream with secret experimental ingredients. The secret ingredients contain substances not normally used in
The company Glassigt AB is developing a new recipe for ice cream with secret experimental ingredients. The secret ingredients contain substances not normally used in food, and Glassigt AB must therefore apply for permission from the Swedish Food Agency to be allowed to sell the ice cream. The company's expected return in the coming year is affected by the outcome of the work with the new recipe because it will affect the year's ice cream sales. If the ice cream is not approved, the company will not be able to sell the ice cream and therefore not make any money from the product. If the ice cream is approved and is as divinely good as you hope, it will be a success and you will be able to sell large quantities at a high price. If the ice cream is approved but is not better than any other ice cream, the company will indeed be able to sell the ice cream but will have to sell it at a significantly lower price. In the same market, there is also the competing company Helt vanglig glass AB, whose return is of course also affected by the outcome.
Outcome Probability Return in percent Ice cream Plain ice cream
Passed divinely good 0.25 13.55 10.47 Passed mediocre 0.35 11.15 11.67 Not approved 0.40 9.15 12.67
The table above shows the probabilities for the different outcomes and the returns that the different outcomes result in. Calculate the covariance between the returns of the two companies. Enter your answer in percentage units (not decimal form) and round to two decimal places, is your answer e.g. 7.2623% then answer 7.26.
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