The owner of Crmerie du Nord wants to open two new branches. Here are the possible earnings
Question:
The owner of Crèmerie du Nord wants to open two new branches. Here are the possible earnings per hour and the probabilities that they will occur:
ProjetA
Gains (en$/hr) | Probabilits |
18 | 0,20 |
30 | 0,15 |
37 | 0,10 |
40 | 0,05 |
45 | 0,50 |
ProjectB
Gains (en$/hr) | Probabilits |
20 | 0,35 |
27 | 0,25 |
30 | 0,25 |
35 | 0,10 |
42 | 0,05 |
Question4
Which project has the highest expected return? ( 6 points of which 2 points are allocated for calculations )
[Insert your answer here.]
Question5
Which project has the lowest expected variance? ( 6 points of which 2 points are allocated for calculations )
[Insert your answer here.]
Question6
Using the coefficient of variation as a relative measure of risk, determine which of the two projects appears riskier. ( 8 points of which 4 points are allocated for the calculation of the coefficients of variation )
[Insert your answer here.]
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill