A company is considering investing in a new project that has an estimated profit of $500,000. However, there is some uncertainty about the potential profit, and the company estimates that there is a 40% chance that the actual profit will be $400,000, a 30% chance that it will be $500,000, and a 30% chance that it will be $600,000. The company wants to determine the expected value and the standard deviation of the profit for this project.

a) What is the expected value of the profit for this project?
b) What is the standard deviation of the profit for this project?

(Show all calculations and round your final answers to two decimal places)

Answer rating: 100% (QA)

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