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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
- Use the following information for questions 8 to 10.
- You are given the following probability distribution.
- 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
- What is the expected value of the cash flows?
- A.5,990
- B.4,700
- C.2,600
- D.6,100
- E.3,590
- F.7,300
- 3 points
- What is the variance of the cash flows?
- A.27,177,300
- B.15,555,990
- C.19,666,100
- D.14,410,000
- E.24,600,000
- F.18,460,700
- 3 points
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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