The XYZ Company Has Estimated Expected Cash Flows for 1996

question 37

Essay

The XYZ Company has estimated expected cash flows for 1996 to be as follows:
$$\begin{array} { | c | r | } \hline \text { Probability } & \text { Cash flow } \\\hline .10 & \$ 120,000 \\\hline .15 & 140,000 \\\hline .50 & 150,000 \\\hline .15 & 180,000 \\\hline .10 & 210,000 \\\hline\end{array}$$ Calculate:
a.expected value
b.standard deviation
c.coefficient of variation
d.the probability that the cash flow will be less than $100,000

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Definitions:

Capillary Bed

A network of small blood vessels known as capillaries, which facilitate the exchange of oxygen, nutrients, and waste materials between the blood and tissues.

Vena Cava

A large vein carrying deoxygenated blood into the heart, consisting of two main branches, the superior and inferior vena cava.

Arteriole Branch

A small branch of an artery leading into capillaries, responsible for regulating blood flow from arteries to capillaries.

Infarction

The blockage of blood flow to a specific organ or area of tissue, leading to the local demise of that tissue.