Mitchell Auto Parts, Inc. has estimated the probability distribution of its annual net cash flows as follows:
Cash Flow
Probability (in Thousands of Dollars)
0.10 ...... $1,000
0.20 ...... 1,500
0.40 ...... 2,000
0.20 ...... 2,500
0.10 ...... 3,000
a. Compute the expected annual cash flow.
b. Compute the standard deviation of annual cash flows.
c. Compute the coefficient of variation of annual cash flows.