The XYZ Company has estimated expected cash flows for 1996 to be as follows:
Probability Cash flow
.10 $120,000
.15 140,000
.50 150,000
.15 180,000
.10 210,000
Calculate:
a. expected value
b. standard deviation
c. coefficient of variation
d. the probability that the cash flow will be less than $100,000
a. $156,000
b. $23,749
c. 0.152
d. 0.91% (z-statistic is 2.36 )
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Which of the following had the greatest impact in pulling the U.S. economy out of the Great Depression?
a. The economy's natural tendency to contract toward potential output b. The federal government's aggressive policy of tax cuts c. The federal government's aggressive policy of monetary stimuli d. A precipitous drop in aggregate demand e. Increased spending during World War II
Which of the following statements accurately expresses evidence that globalization does not encourage a "race to the bottom" in labor standards?
a. The wages paid by multinational firms to their poor countries' subsidiaries are higher than the wages paid in rich countries. b. Poor countries that participate in globalization have quickly become rich. c. Multinational firms tend to pay higher wages than local firms, but they tend to provide lower benefits than existed in the country prior to globalization. d. Multinational firms must sign contracts with the IMF stating that they will offer exceptional worker benefits. e. Multinational firms tend to pay higher wages than local firms and tend to provide greater benefits for workers than existed in the country prior to globalization.