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problem: Myers Business Systems is estimating the introduction of a brand new product. The possible levels of unit sales and the probabilities of their occurrence are given below:

Possible Market Reaction

Sales in Units

Probabilities

Low response

20

0.1

Moderate response

40

0.3

High response

55

0.4

Very high response

70

0.2

[A] Determine the expected value of unit sales for the new product?
[B] Determine the standard deviation of unit sales?

Basic Finance, Finance

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  • Reference No.:- M916905

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