Question: Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $110 per day (expected value) is projected for each of

 Mary Beth Clothes is considering opening an additional suburban outlet. An

Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $110 per day (expected value) is projected for each of the two locations being evaluated. Site A Probability Cash Flows 0.10 $60 0.30 110 0.30 120 0.20 175 Site B Probability Cash Flows 0.10 $30 0.20 60 0.40 110 0.20 160 0.10 190 Expected value $110 Expected value $110 a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round the final answers to 4 decimal places.) Coefficient of variation Site A Site B b. Which of these sites would you select based on the distribution of these cash flows? Site A Site B

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