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Q. The demand for MICHTEC's products is related to the state of the economy. If the economy is expanding next yr (an above normal growth in GDP) the company expects sales to be $90 million. If a recession occurs next yr (a decline in GDP), sales are expected to be $75 million. If next yr is normal (a moderate growth in GDP), sales are expected to be $85 million. MICHTEC's economists estimate the chances that the economy will be either expanding, normal, or in a recession next yr at 0.3, 0.5 also 0.3 respectively.

a. Compute expected yrly sales

b. Compute the standard deviation of yrly sales.

c. Compute the coefficient of variation of yrly sales.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9171825

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