Answer:
0.17
Explanation:
The computation of the expected return on investment is shown below:
= (Expected return of the outcome 1 × Probability of the outcome 1) + (Expected return of the outcome 1 × Probability of the outcome 1) + (Expected return of the outcome 1 × Probability of the outcome 1)
= (0.15× 0.50) + (0.25 × 0.30) + (0.10 × 0.20)
= 0.075 + 0.075 + 0.02
= 0.17
Answer:
D) AIG
Explanation:
We went back in time to 2008 and we are in the middle of the subprime mortgage crisis. This is an example of how mortgage backed securities and collateralized debt obligations worked.
The problem with this scenario is that in order for every company involved to be able to make a profit, the mortgages' interest rates skyrocketed which made it harder for families to pay back their loans. This eventually made the families lose their houses and that was the end to the housing bubble and the whole economy collapsed.
What are the answer choices?
The calculated profit per unit for base-case, worst-case is, and best-case for the management of Brinkley corporation is:
<h3>The Profit per unit for base-case:</h3>
45 - 1 1- 24 - 3 = $7
<h3>Profit per unit for worst case:</h3>
45 - 12 - 25 - 3 = $3 per unit
<h3>Profit per unit for best case:</h3>
45 - 10 - 20 - 3 = 12$ per unit
b. The mean profit per unit is given as $7.05
c. The reason the simulation approach is preferable is due to the fact that it can help to determine the probability of profit as a particular amount, unlike the what-if scenario analysis.
It can also create different scenarios for possible resources.
d. The probability of the fact that the profit per unit woul be less than 5 is 9%
Read more on risk analysis here: brainly.com/question/6955504
Answer:
C. Decrease by $7,000
Explanation:
Calculation to determine what company's overall operating income would Decrease by
Using this formula
Overall operating income =(Product X units*Contribution margin )-Fixed overhead eliminated
Let plug in the formula
Overall operating income=(5,000 units*$5)-$18,000
Overall operating income=$25,000-$18,000
Overall operating income=$7,000 Decrease
Therefore As a result of discontinuing Product X, the company's overall operating income would:Decrease by $7,000
