Problem: The XYZ Company has estimated the expected cash flows [in thousands] for 1996 to be as follows:
Probability Cash Flow
10 10
15 140
50 150
15 180
10 210
Calculate:
1. Expected value
2. Standard deviation
3. Coefficient of variation
4. If the true cash flows are normally distributed with the mean from (a) and standard deviation from (b), what is the probability that the true cash flow will be less than $100,000?