Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Alternative 1 Outcomes Probability 50 0.40 0.20 80 135 0.40 Failure Acceptable Successful Alternative 1 Alterative 2 Alternative 3 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Coefficient of Variation Alternative 2 Outcomes Probability 70 0.20 130 0.40 265 0.40 Rank Alternative 3 Outcomes Probability 85 0.40 325 0.40 410 0.20
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Alternative 1 Outcomes Probability 50 0.40 0.20 80 135 0.40 Failure Acceptable Successful Alternative 1 Alterative 2 Alternative 3 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Coefficient of Variation Alternative 2 Outcomes Probability 70 0.20 130 0.40 265 0.40 Rank Alternative 3 Outcomes Probability 85 0.40 325 0.40 410 0.20
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter15: Decision Analysis
Section: Chapter Questions
Problem 19P: A firm has three investment alternatives. Payoffs are in thousands of dollars. a. Using the expected...
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