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Lowe Tech Co. is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given.

 

Possible Market Reaction_________Sales in Units_____________Probabilities

 

Low Response_____________________30______________________.30

 

Moderate Response_________________45______________________.20

 

High Response_____________________55______________________.20

 

Very high response_________________70_______________________.30

 


a. What is the expected value of unit sales for the new product?

b . What is the standard deviation of unit sales?

Basic Finance, Finance

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