Managerial Economics

1 . The demand for MICHTEC s products is related to the state of the frugality . If the economy is expanding near course of study (an above- normal growth in gross domestic product , the alliance expects sales to be 90 trillion . If a turning point occurs next year (a decline in GDP , sales are expected to be 75 million . If next year is normal (a moderate growth in GDP , sales are expected to be 85 million . MUCHTEC s economists estimate the chances that the economy will be either expanding , normal , or in a recession next year at 0 .2 , 0 .5 , and 0 .3 , respectivelyCompute expected annual salesExpected one-year Sales (in mil )Probability of Growth footstep (in Sales (in mil expanding 90 0 .20 18normal 85 0 .50 42 .5recession 75 0 .30 22 .

5 ANNUAL sales Compute the standard deviation of annual salesScenario Expected Annual Sales (in mil )List of deviations (Mean - Sales )Squares of deviations expanding 90 6 .666667 44 .44444normal 85 1 .666667 2 .777778recession 75 -8 .33333 69 .44444 Mean 83 .3333358 .33333 Standard deviation 7 .63763 mandate : square root of (90 - 83 .33 )2 (85-83 .33 ) 2 (75-83 .33 ) 2Number of observations - 1 ? 44 .44 2 .78 69 . 442 ?58 .333Standard deviation 7 .6373Compute the coefficient of mutant of annual sales 7 .637383 .33Coefficient of variation .09162 . Two goods fall in a cross price elasticity of 1 .2Would you identify these goods as substitutes...If you want to get a full essay, rear it on our website: Ordercustompaper.com

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