The management of Rubicon & Styx is trying to decide whether to advertise its world-famous hot sauce Sergeant Garcia's Revenge on television (campaign A) or in magazines (campaign B). The marketing department of Rubicon & Styx has estimated the probabilities of alternative sales revenues (net of advertising costs) using each of the two media outlets, summarized in the table below:

Probabilities of Alternative Sales Revenues for Campaign A and Campaign B

A.Calculate the expected revenuesfrom sales of Sergeant Garcia's Revenge from each advertising campaign.

1. What is the standard deviation of the distribution of profits from each advertising campaign?
2. Which advertising campaign appearsrelativelyriskier?
3. Which advertising campaign should Rubicon & Styx select?
4. ?
   

The management of Rubicon & Styx is trying to decide whether to advertise its world-famous hot sauce Sergeant Garcia's Revenge on television (campaign A) or in magazines (campaign B). The marketing department of Rubicon & Styx has estimated the probabilities of alternative sales revenues (net of advertising costs) using each of the two media outlets, summarized in the table below: Probabilities of Alternative Sales Revenues for Campaign A and Campaign B Campaign A (television) Campaign B (magazines) Sales, Si ($) Probability Sales, Si ($) Probability 5,000 0.20 6,000 0.15 8,000 0.30 8,000 0.35 11,000 0.30 10,000 0.35 14,000 0.20 12,000 0.15