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

Price: $3 or $4

Probability of DD

$3

$4.

0.1	160M units	60M units
0.2	200M units	170M units
0.3	280M units	260M units
0.4	400M units	330M units

Which price should you charge and why? Please show your work (including excel).

1. Expected demand in units

2. Compute the standard deviation of the demand in units ($3 or $4)

3. Coefficient valuation