Lola Is in the Process of Forecasting the Sales Growth

question 7

Multiple Choice

Lola is in the process of forecasting the sales growth rate for an early-stage venture specializing in the production of durable running shoes. Lola predicts a .2 probability of an 80% growth in sales, a .3 probability of a 60% growth in sales, a .4 probability of a 40% growth in sales, and a .1 probability of a 10% decrease in sales. What is the expected sales growth rate of the venture?

• A) 47%
• B) 49%
• C) 51%
• D) 53%

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Definitions:

Effective Offer

A proposal made in such terms that upon acceptance, a legally enforceable contract is formed.

Communicated

The process of conveying information or expressing ideas and feelings through speech, writing, or other mediums.

Offeree

An individual or entity that receives a proposal or invitation to enter into an agreement.

Price

The amount of money expected, required, or given in payment for something.