Pabst Dental Supplies is evaluating the introduction of a new product. The possible levels of unit sales

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Pabst Dental Supplies is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of occurrence are given.

Possible market reaction Sales in units Probabilities .10 Low response Moderate response 20 40 .20 .40 .30 High response

a. What is the expected value of unit sales for the new product?
b. What is the standard deviation of unit sales?

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Foundations of Financial Management

ISBN: 978-1259024979

10th Canadian edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta

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