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Use the following information for questions . You are given the following probability distribution. Economy Growth State Probability P i Cash Flow X i Weak
Use the following information for questions . You are given the following probability distribution.
Economy Growth State | Probability Pi | Cash Flow Xi | |
Weak | 0.2 | 2,000 | |
Moderate | 0.4 | 6,000 | |
Normal | 0.3 | 10,000 | |
High | 0.1 | 15,000 |
A.) What is the expected value of the cash flows?
B.) What is the variance of the cash flows?
C.) What is the coefficient of variation of the cash flows?
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