Question: 5.The following is a probability function used to depictthe projected net income (in millions) in the coming year for ABC Limited: Net Income (X) Probability

5.The following is a probability function used to depictthe projected net income (in millions) in the coming year for ABC Limited:

Net Income (X) Probability (f(X))

-2 0.15

0 0.20

2 0.45

4 W

a. Find the value of W.

b. What is the probability that the company has a net income of less than $1

million in the coming year?

c. What is the probability that the company is not profitable (net income leas

than 0) in the coming year?

d. What is the probability that the company makes more than $0.5 million in

the coming year?

e. What is the expected net income for ABC Limited, i.e, what is the

expected value of this probability distribution?

f. What is the standard deviation of this probability function?

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