Suppose a firm's sales are likely to grow by 4.23%, and you believe there is a...

Suppose a firm's sales are likely to grow by 4.23%, and you believe there is a 67% chance of that happening. At your most optimistic, they might grow by 8.68%, and at your most pessimistic, 2.21%, which you believe to be equally likely outcomes. What is your expected sales growth? Give your answer in percent and provide at least two decimal places, e.g., 5.92, not 0.0592.

Expert Solution

Chance

Expected sales growth= {(o.67*8.68)+[(1-0.67)*2.21]}

Or, (0.67*8.68)+(0.33*2.21)

Or, 5.8156+0.7293

Or, 6.5443

Or, 6.54*

So , excepted sales growth is 6.54 %

jeff jeffy answered 2 years ago

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