Problem: Lowe Technology Corp. is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence illustrated below:
Q1. What is the expected value of unit sales for the new product?
Q2. What is the standard deviation of unit sales?
Possible Sales
Market Reaction in Units Probabilities
Low response ..................... 20 .10
Moderate response ............. 40 .20
High response .................... 65 .40
Very high response ............. 80 .30