Project C Has an Expected Value of $500 and a Standard

question 46

Essay

Project C has an expected value of $500 and a standard deviation of 50.Project D has an expected value of $300 and a standard deviation of 10.Comment on the desirability of these projects.

---

Definitions:

Pricing

The method of determining the value at which a product or service will be sold to consumers.

Transfer Pricing

Pertains to the pricing of goods, services, and intellectual property when these are exchanged between companies under a common control, affecting tax liabilities and financial results.

Division Charges

Fees or costs allocated to separate departments or divisions within a company for internal accounting or budgeting purposes.

Premium Pricing

A strategy where goods or services are priced higher than the market average to create a perceived value of higher quality or exclusivity.