Senior managment of Nancys Nooks NN has determined that ther

Senior managment of Nancy\'s Nooks (NN) has determined that there is a 20 percent chance EPS will be $4.50 next year, there is a 70 perent chance that EPS will be 1.50, and there is a 20 percent chance EPS will be -$1.80. Calculate the expected value, standard deviation, and coefficient variation for NN\'s forcasted EPS.

Solution

Since 20%+70%+20%=110%, not 100%. This is not a probability distribution table. We cannot calculate the expected value, standard deviation, and coefficient variation for NN\'s forcasted EPS.