Smart Products
Suppose Smart Products has three divisions which contribute 40, 35, and 25 percent each to its revenues.
-What is Smart Products' Herfindahl Index on focus?

Question

Quizplus · Accepted Answer

To calculate the Herfindahl Index on focus, we sum the squares of the percentage of revenues of each division. In this case, it would be:
(.40)^2 + (.35)^2 + (.25)^2 = 0.345625
Therefore, the answer is C) 0.345.

There is no best choice question provided in the prompt.

Smart Products Suppose Smart Products Has Three Divisions Which Contribute 40, 35