Question

Use the following information for the next two problems. Harris Company is evaluating the introduction of...

Use the following information for the next two problems. Harris Company is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities are: Possible Market Reaction Sales in Units Probabilities Low response...................... 40 .20 Moderate response............... 60 .30 High response...................... 80 .50 What is the expected value of unit sales for the new product? What is the standard deviation of unit sales?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The expected value of unit sales for the new product

Expected value of unit = Sum(Number of units x Probability)

= (40 Units x 0.20) + (60 Units x 0.30) + (80 Units x 0.50)

= 8 Units + 18 Units + 40 Units

= 66 Units

Standard deviation of unit sales

Firstly, Calculate the Variance of the units

Variance = [(40 - 66)2 x 0.20] + [(60 - 66)2 x 0.30] +[(80 - 66)2 x 0.50]

= [676 x 0.20] + [36 x 0.30] + 196 x 0.50]

= 135.20 + 10.80 + 98

= 244 Units

Standard Deviation = (244)1/2 or the Square Roof of 244

= 15.62 Units

“Therefore, the Standard deviation of unit sales would be 15.62 Units”

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit...
Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given next: Possible Market Reaction Sales in Units Probabilities Low response 25 0.20 Moderate response 40 0.30 High response 55 0.20 Very high response 60 0.30 a. What is the expected value of unit sales for the new product? (Do not round intermediate calculations and round your answer to the nearest whole unit.) b. What is...
16. Myers Business Systems is evaluating the introduction of a new product. The possible levels of...
16. Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given next:    Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes and probabilities of the outcomes are shown next.          Possible Outcomes Additional Sales in Units Probabilities Ineffective campaign 60 .40 Normal response 80 .30 Extremely effective 140 .30       Compute the coefficient of variation. (Do not...
Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes...
Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes and probabilities of the outcomes are shown next. Possible Outcomes Additional Sales in Units Probabilities Ineffective campaign 60 .20 Normal response 80 .40 Extremely effective 140 .40 Compute the coefficient of variation. (Do not round intermediate calculations. Round your answer to 3 decimal places.)
Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes...
Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes and probabilities of the outcomes are shown next.          Possible Outcomes Additional Sales in Units Probabilities Ineffective campaign 70 .20 Normal response 80 .20 Extremely effective 150 .60       Compute the coefficient of variation. (Do not round intermediate calculations. Round your answer to 3 decimal places.)   
Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes...
Shack Homebuilders Limited is evaluating a new promotional campaign that could increase home sales. Possible outcomes and probabilities of the outcomes are shown next. Possible Outcomes Additional Sales in Units Probabilities    Ineffective Campaign 50 0.10 Normal response 70 0.20 Extremely effective 130 0.70 Compute the coefficient of variation = (Do not round intermediate calculations. Round your answer to 3 decimal places.)
1. Note that data typically changes for each new question, even when the same company or...
1. Note that data typically changes for each new question, even when the same company or product name is used. Fernley Company produces two different products with the following data for the most recent month: Table Chair Total Selling price per unit $600 $200 Variable cost per unit $480 $120 Expected unit sales 28,000 7,000 35,000 Sales mix 80% 20% 100% Fixed costs $2,800,000 Assume the sales mix remains the same at all levels of sales. __________ units in total...
A national restaurant chain has developed a new specialty sandwich. Initially, it faces two possible decisions:...
A national restaurant chain has developed a new specialty sandwich. Initially, it faces two possible decisions: introduce the sandwich nationally at a cost of R180 000 or evaluate it in a regional test market at a cost of R29 000. If it introduces the sandwich nationally, the chain might find either a high or low response to the idea. Probabilities of these events are estimated to be 0,6 and 0,4, respectively. With a high response, gross revenues of R650 000...
6. Barbour Electric is considering the introduction of a new product. This product can be produced...
6. Barbour Electric is considering the introduction of a new product. This product can be produced in one of several ways: (a) using the present assembly line at a cost of $25 per unit, (b) using the current assembly line after it has been overhauled (at a cost of $5,000) with a cost of $22 per unit; and (c) on an entirely new assembly line (costing $20,000) designed especially for the new product with a per unit cost of $20....
Use the following information for the next two problems. A survey of a group of students...
Use the following information for the next two problems. A survey of a group of students reveals that 45% use Facebook, 40% use MySpace, and that 5% use both. What is the probability that a randomly selected student uses Facebook or MySpace or both? a. 0.67 b. 0.90 c. 0.85 d. 0.80 Suppose that a student is selected at random and it’s learned that he/she uses Facebook. Given that, what is the chance that they use MySpace? a. 0.050 b....
Jonah Hill Company manufactures two products. Information about the two products is as follows:                 Product...
Jonah Hill Company manufactures two products. Information about the two products is as follows:                 Product X Product Y Selling price per unit $80 $30 Variable costs per unit 40 20 Contribution margin per unit $40 $10 The company expects fixed costs to be $185,000. The firm expects 40% of its sales (in units) to be Product X and 60% to be Product Y (a sales mix of 4:6). Calculate the weighted average contribution margin or contribution margin by package...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT