What is the standard deviation of the launch price

Assignment Help Econometrics

Reference no: EM131325200

The manager of the aerospace division of General Aeronautics has estimated the price it can charge for providing satellite launch services to commercial firms. Her most optimistic estimate (a price not expected to be exceeded more than 10 percent of the time) is $2 million. Her most pessimistic estimate (a lower price than this one is not expected more than 10 percent of the time) is $1 million. The expected value estimate is $1.5 million. The price distribution is believed to be approximately normal.

a. What is the expected price?

b. What is the standard deviation of the launch price?

c. What is the probability of receiving a price less than $1.2 million?

Reference no: EM131325200

Questions Cloud

Identify and describe a bar that you do like : Discuss concept, target market, type of customer and competitive strategy. A two page narrative, double spaced, should be sufficient to complete this assignment.

Design a descriptive study to investigate : Design a descriptive study to investigate if better meal options will increase patient satisfaction. Include the following elements of design: Develop a research question or purpose of the study and Selection of subjects for study (what is the samp..

How can these obligations impact individual : Explain what obligations the U.S. government has towards its citizens and how can these obligations impact individual and group rights? Provide real-world examples to support your explanation. Fully respond to all parts of the prompt and write you..

Why translation exposure is relevant to an mnc : Present an argument for why translation exposure is relevant to an MNC.- Present an argument for why translation exposure is not relevant to an MNC.

What is the standard deviation of the launch price : Her most pessimistic estimate (a lower price than this one is not expected more than 10 percent of the time) is $1 million. The expected value estimate is $1.5 million. The price distribution is believed to be approximately normal.

Are currency correlations perfectly stable over time : Are currency correlations perfectly stable over time? What does your answer imply about using past data on correlations as an indicator for the future?

What is the net profitability effect on the mexican firm : What is the net profitability effect on the Mexican firm? What international market concept is demonstrated in this example? Discuss the risks associated with changing exchange rates and international commerce and provide a scenario demonstrating ..

Design program that will serve as database for keeping track : You are to design a program that will serve as a database for keeping track of video games and various statistics for the games. This application will allow for the storing of the name of a video game.

What is assessment as to firms degree of economic exposure : What is your assessment as to the firm's degree of economic exposure? Assume that the RUD and the BTD move in tandem against the US$.

User Account

All Pages