Question: The following is a probability function used to depict the projected net income (in millions) in the coming year for ABC Limited:( 12 Points )

The following is a probability function used to depict the projected net income (in millions) in the coming year for ABC Limited:(12 Points)

net income (x) probability (f(x) )

-1.5 0.20

0 0.25

1 0.40

2 W

1.Find the value of W.

2.What is the probability that the company has a net income of less than $1 million in the coming year?

3.What is the probability that the company is not profitable (net income leas than 0) in the coming year?

4.What is the probability that the company makes more than $0.5 million in the coming year?

5.What is the expected net income for ABC Limited, i. e, what is the expected value of this probability distribution?

6.What is the standard deviation of this probability function

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

Q:

What is wrong with the following statements? Please explain. a.P (A or B) = 1.0 if P(A) = 0.6 and P(B) = 0.2 b.P (A and B) = - 0.38 c.P(A) = 1.35 d.P (A and B) = 0.8 if P(A) = 0.5 and P(B) = 0.2...

Q:

The following is a probability function used to depict the projected net income (in millions) in the coming year for ABC Limited: (12 Points) Net Income (X) -1.5 0 1 2 Probability (f(x)) 0.20 0.25...

Q:

1.The following is a probability function used to depict the projected net income. 1. The following is a probability function used to depict the projected net income (in millions) in the coming year...

Q:

The moment you take out a loan, you're starting to build your credit history. True False p. 5. The following is a probability function used to depict 2 1 YORKVILLE the projected net income (in...

Q:

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...

Q:

It would be great if you could also list the formulas used. Thank you in advance! Comprehensive Problem 9-26. Stone Wood Products has a capital structure of 35 percent debt and 65 percent common...

Q:

Hello This is regarding BUS5440. I need help with the following discussion questions and I need the answer in next 2 hrs as I have a deadline today, *********************************** Share your...

Q:

1) A project has a net present value of zero. Given this information: A) the project has a zero percent rate of return. B) the project requires no initial cash investment. C) the project has no cash...

Q:

Hello This is related to Course BUS5440. I need help with the following project:- OCS Project 1) These are the instructions given in my class to do this project:- The OCS project requires you to...

Q:

Hi guys, I am trying to properly answer an accounting question concerning shares, bonds, and stock. I was given two annual reports, and am asked to make a decision on one of the companies depending...

Q:

For the tree shown in Fig. 12.30, list the vertices according to a preorder traversal, an inorder traversal, and a postorder traversal. V.

Q:

Suppose that labor is the only input used by a perfectly competitive firm that must pay $100 per worker per day, and sells each unit at $10. The firm's production function is given as follows: A....

Q:

Different types of budgets cover different time periods. For instance, budgets may cover a decade or more, whereas budgets generally cover a fiscal year or less.

Q:

Acme Company has two departments and uses departmental rates to apply overhead to jobs. The allocation base is machine hours for Department Y and direct labor hours for Department Z. Acme made the...