Answer to Question #16424 in Statistics and Probability for Robert
The company's best estimate of the distribution of sales over the 10 years periods is:
high demand with probability = 0.5
Moderate demand with probability = 0.3
Low demand with probability = 0.2
Cost - volume profit analysis done by ABC industries Ltd management indicates these conditional outcomes under the various combinations of plant size and market size.
a) A large plant with high demand would yield 10,000,000 annually in profits.
b) A large plant with moderate demand would yield 6,000,000 annaully in profits
c) A large plant with low demand would lose 2,000,000 annaully because of productions inefficiencies.
d) A small plant with high demand would yield only 2,500,000 annually in profits considering the cost of
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