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Solution Library
Calculation Of Expected Value Of Sales Projection
Question
Depending upon the state of the economy, Ables Manufacturing Corp. expects to sell the following number of prefabricated buildings. The probability of each state is indicated. What is the expected value of the total sales projection?
|
Outcome |
Probability |
Units |
Price |
|
Bad |
0.15 |
75 |
$25 |
|
Normal |
0.60 |
150 |
$35 |
|
Great |
0.25 |
300 |
$45 |
a). $5,625
b). $4,540
c). $12,800
d). None of these
Summary
The question belongs to Accounting and it discusses about calculation of expected value from sales projection.
Total Word Count 31
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