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A Company Has Improved Its Anti-Virus Program and Has Released

question 27

Essay

A company has improved its anti-virus program and has released a new version. Assume there is a 0.6 probability that the users of this anti-virus will upgrade the version in any particular year. That is, the upgrade year of the user is a geometric random variable. The revenue generated from the upgrade (when it occurs) follows a normal distribution with a mean of $80,000 and a standard deviation of $22,000.
a. Complete a simulation model that analyzes the net present value of the revenue from the user upgrade. Use an annual discount rate of 8 percent.
b. What is the average net present value earned by the company?
c. What is the standard deviation of net present value?

Understand the historical significance and evolution of sociological theories, focusing on structural functionalism.
Compare and contrast structural functionalism with other theoretical paradigms such as conflict theory.
Understand the concept of anomie and its causes.
Comprehend the functionalist perspective on structural inequality as presented by Kingsley Davis and Wilbert Moore.

Definitions:

Earnings Per Share

A company's profit divided by its number of common outstanding shares, indicating the portion of a company's profit allocated to each share of stock.

Sales Growth

The increase in sales revenue over a specified period, indicating the performance and expansion potential of a business.

Market Share

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.

Input Standards

are pre-set criteria or benchmarks that specify the expected quality, quantity, and characteristics of inputs to a process or system.

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