Problem 13-2 Expected value and standard deviation [LO1]

Myers Business Systems is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are given next:

Possible Market Reaction	Sales in Units			Probabilities
Low response		35			.20
Moderate response		45			.20
High response		60			.30
Very high response		80			.30

a.	What is the expected value of unit sales for the new product? (Do not round intermediate calculations and round your answer to the nearest whole unit.)

Expected value

units

b.	What is the standard deviation of unit sales? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Standard deviation

units