Please assist with problems below.
Problem 1: Profit (in $millions) if Demand is
Output Level Weak Strong
1 million units 60 175
1.5 million units 50 200
2.0 million units 50 400
Problem 2. Now suppose that management believes the probability of weak demand in 2012 is25% and the probability of strong demand is 75%. Compute the expected profit,variance, standard deviation, and coefficient of variation for each level of output:
Output:
1 million units ________ ________ ________ ________
1.5 million units ________ ________ ________ ________
2.0 million units ________ ________ ________ ________
Problem 3. Based on the expected value rule, Star Products should produce ________ units in 2012.