Question: Myers Business Systems is estimating the introduction of a brand new product. The possible levels of unit sales and the probabilities of their occurrence are given below:
|
Possible Market Reaction
|
Sales in Units
|
Probabilities
|
|
Low response
|
20
|
0.1
|
|
Moderate response
|
40
|
0.3
|
|
High response
|
55
|
0.4
|
|
Very high response
|
70
|
0.2
|
[A] Determine the expected value of unit sales for the new product?
[B] Determine the standard deviation of unit sales?