Transoceanic Airlines is examining a resort motel chain to add to its operation.

Question

Transoceanic Airlines is examining a resort motel chain to add to its operation. Prior to the acquisition, the normal expected outcomes for the firm are as follows:

Outcomes
($ millions)

Probability

Compute the expected value, standard deviation, and coefficient of variation.(Enter your answer in millions.Round Standard deviation to 2 decimal places and final answer to 3 decimal places.Omit the "$" sign in your response.)

Transoceanic Airlines is examining a resort motel chain to add to its operation. Prior to the acquisition, the normal expected outcomes for the firm are as follows:

Explanation / Answer

Expected Value = 20*.30 + 60*.30 + 90*.40 = 60 Variance = .20 *(20-60)^2 + .30*(60-60)^2 + .40*(90-60)^2 = 680 SD = (680)^.5 = 26.08 Coefficient of Variation = 26.08/60 = .43

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