Problem 13 3 Expected value and standard deviation LO13 1 Sampson Corp is evaluating the introduction of a new product The possible levels of unit sales and the probabilities of their occurrence are shown next Possible Market Reaction Sales in Units Probabilities Low response 80 0 40 Moderate response 90 0 10 High response 110 0 30 Very high response 130 0 20 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 ) b What is the standard deviation of unit sales (Do not round intermediate calculations Round your answer to 2 decimal places )

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Question: Problem 13-3 Expected value and standard deviation [LO13-1] Sampson Corp. is evaluating the introduction of a new product. The possible levels of unit sales and

Problem 13-3 Expected value and standard deviation [LO13-1]

Sampson Corp. is evaluating the introduction of a new product. The possible levels of unit sales and the probabilities of their occurrence are shown next:

Possible Market Reaction	Sales in Units		Probabilities
Low response		80		0.40
Moderate response		90		0.10
High response		110		0.30
Very high response		130		0.20

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.)

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

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