A company is about to develop and then market a new product. It wants to build a
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a. Company experts have no idea what the distribution of the development cost is. All they can state is “we are 95% sure it will be at least $450,000, and we are 95% sure it will be no more than $650,000.”
b. Company experts can still make the same statement as in part a, but now they can also state: “We believe the distribution is symmetric, reasonably bell-shaped, and its most likely value is about $550,000.”
c. Company experts can still make the same statement as in part a, but now they can also state: “We believe the distribution is skewed to the right, and its most likely value is about $500,000.”
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe
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