Macintosh Lumber Believes the Following Probability Distribution Exists for Its

question 218

Multiple Choice

Macintosh Lumber believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?
$\begin{array}{lcc}\text { State of } & \begin{array}{c}\text { Probability } \\\text { of State }\end{array} & \begin{array}{c}\text { Stock's } \\\text { Expected }\end{array} \\\text { the Economy } &\text { Occurring } &\text { Return }\\\text { Boom } & 0.45 & 25 \% \\\text { Normal } & 0.50 & 15 \% \\\text { Repeseion }& 0.05 & 5 \%\end{array}$

• A) 0.2839
• B) 0.3069
• C) 0.3299
• D) 0.3547
• E) 0.3813

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Definitions:

Stereognosis

The ability to recognize objects by touching and manipulating them.

Olfactory Sense

The sense of smell, one of the five senses, which is used to detect and distinguish different odors in the environment.

Smoke Detector

A device that senses smoke, typically as an indicator of fire, and issues an alarm to alert individuals in the vicinity of potential danger.

Sensory Deprivation

A reduction or elimination of stimuli from one or more of the senses, which can have various psychological and physical effects.