The manager of the aerospace division of central Aeronautics has estimated the p

Question

The manager of the aerospace division of central Aeronautics has estimated the price it can charge for providing satellite launch services to commercial firms.Her most optimistic estimate(a price not expected to be exceeded more than 10 percent of the time) is $2 million. Her most pessimistic estimate ( a lower price than this one is not expected more than 10 percent of the time) is$1 million. The expected value estimate is $1.5 million. The price distribution is believed to be approximately. a) What is the expected price? b) What is the standard deviation of the launch price? d) What is the probability of receiving a price less than$.2 million

Explanation / Answer

a) The expected price is $1.5 million b) Standard Deviation = $2,000,000 + $1,500,000/2 = $1,750,000 $250,000^2 + $250,000^2/2 = $125,000,000,000/2 $62,500,000,000 Now for the Standard Deviation s = v$62,500,000,000 s = 250,000 So the standard deviation is $250,000 If your still having trouble calculating standard deviation there is a super easy tutorial below. http://www.mathsisfun.com/data/standard-deviation.html d) Try using a ratio on this one or an inequality. Hope this helps, best of luck.

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