The demand for MICHTEC's products is related to the state of the
economy. If the economy...
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Economics
The demand for MICHTEC's products is related to the state of the
economy. If the economy is expanding next year (an above-normal
growth in GNP), the company expects sales to be $90 million. If
there is a recession next year (a decline in GNP), sales are
expected to be $75 million. If next year is normal (a moderate
growth in GNP), sales are expected to be $85 million. MICHTEC's
economists have estimated the chances that the economy will be
either expanding, normal, or in a recession next year at 0.3, 0.5,
and 0.2, respectively. The expected annual sales is $85.5
million. The standard deviation of annual sales is
million. The coefficient of variation of annual sales
is .
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