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You have a new product. You have to decide on which seeling price ($3 or $4) to charge. The demand (units in million) for each

You have a new product. You have to decide on which seeling price ($3 or $4) to charge. The demand (units in million) for each price and probability distribution is as follows:

probability of dd (units)

$3 $4
probability of dd (units)
0.1 160 m units 60 m units
0.2 200 170
0.3 280 260
0.4 400 330

computed the expected demand in units

compute the standard deviation of demand at $3 and 4$

and finally compute the coefficient of variation = standard deviation / mean

which price should you charge and why?

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