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Use the following information for questions 8 to 10. You are given the following probability distribution. Economy Growth State Probability P i Cash Flow X

  1. Use the following information for questions 8 to 10.
  2. You are given the following probability distribution.
  3. Economy Growth State Probability PiCash Flow Xi Weak 0.2 2,000 Moderate 0.4 6,000 Normal 0.3 10,000 High 0.1 15,000
  4. What is the expected value of the cash flows?
  5. A.5,990
  6. B.4,700
  7. C.2,600
  8. D.6,100
  9. E.3,590
  10. F.7,300
  11. 3 points
Question 9
  1. What is the variance of the cash flows?
  2. A.27,177,300
  3. B.15,555,990
  4. C.19,666,100
  5. D.14,410,000
  6. E.24,600,000
  7. F.18,460,700
  8. 3 points
Question 10

What is the coefficient of variation of the cash flows?

A.2.03

B.0.52

C.1.30

D.0.18

E.1.10

F.1.23

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