The XYZ Company has estimated expected cash flows for 1996 to be as follows:
Probability Cash flow
.10 $120,000
.15 140,000
.50 150,000
.15 180,000
.10 210,000
Calculate:
a. expected value
b. standard deviation
c. coefficient of variation
d. the probability that the cash flow will be less than $100,000
a. $156,000
b. $23,749
c. 0.152
d. 0.91% (z-statistic is 2.36 )
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