A firm is making production plans for next quarter,but the manager does not know what the price of the product will be next month.She believes there is a 30 percent chance price will be $500 and a 70 percent chance price will be $750.The four possible profit outcomes are: Which option is chosen using the coefficient of variation rule?
A)Option A
B)Option B
C)Both options have the same coefficient of variation to two decimal places).
D)cannot calculate expected profit with the given information

Question

A firm is making production plans for next quarter,but the manager does not know what the price of the product will be next month.She believes there is a 30 percent chance price will be $500 and a 70 percent chance price will be $750.The four possible profit outcomes are:  Which option is chosen using the coefficient of variation rule?
A)Option A 
B)Option B 
C)Both options have the same coefficient of variation to two decimal places). 
D)cannot calculate expected profit with the given information

Quizplus · Accepted Answer

The Answer of A firm is making production plans for next quarter,but the manager does not know what the price of the product will be next month.She believes there is a 30 percent chance price will be $500 and a 70 percent chance price will be $750.The four possible profit outcomes are:  Which option is chosen using the coefficient of variation rule?
A)Option A 
B)Option B 
C)Both options have the same coefficient of variation to two decimal places). 
D)cannot calculate expected profit with the given information

A Firm Is Making Production Plans for Next Quarter,but the Manager