The demand for MICHTEC's products is related to the state of the economy. If the economy is
Question:
The demand for MICHTEC's products is related to the state of the economy. If the economy is expanding next year (an above-normal growth in GNP), the company expects sales to be $90 million. If there is a recession next year (a decline in GNP), sales are expected to be $75 million. If next year is normal (a moderate growth in GNP), sales are expected to be $85 million. MICHTEC's economists have estimated the chances that the economy will be either expanding, normal, or in a recession next year at 0.1, 0.6, and 0.3, respectively.
The expected annual sales is million.
The standard deviation of annual sales is million.
The coefficient of variation of annual sales is .
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris