Sampson Corp. is evaluating the introduction of a new product. The possible leve

Question

Sampson Corp. 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

What is the expected value of unit sales for the new product? (Do not round intermediate calculations and round your answer to the nearest whole unit.)

What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

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

Explanation / Answer

Expected Value : 70

Standard Deviation : 19.24

Standard Deviation : 19.24

Possible A =Sales B =Probabilities C= A*B D =(C-X)^2 D*B Market Reaction in Units   Low response 30 0.1 3 1600 160   Moderate response 50 0.2 10 400 80   High response 75 0.4 30 25 10   Very high response 90 0.3 27 400 120 Total Number of Units Sold (X) 70 Total 370 Standard Deviation 19.24

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.