Expected Value of Unit Sales Northern Wind Power, a new age energy company, is c

Question

Expected Value of Unit Sales Northern Wind Power, a new age energy company, is considering the introduction of a product intended to use wind as an energy-producing device. The possible level of unit sales and the probability of their occurrence are given. Acceptance potential Sales in units Probabilities Low 50 .10 Moderate 70 .40 Strong 90 .20 Very strong 140 .30 (a) What is the expected value of unit sales for the new product? (b) What is the standard deviation of unit sales?(Round your answer to 2 decimal places.)

Explanation / Answer

a) expected sales = 50*.1+70*.4+90*.2+140*.3= 93 b) standard deviation = 32.58

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