Chapter 5 solution - Section A LT Group 9 5.2 Explain how...

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Section A : LT Group 9 5.2 Explain how the values of a discrete random variable differ from the values of a continuous random variable. Result of a discrete random variable always takes an integer value. For example, flipping a coin is a random process and the number of heads or tails is represented by an integer value. Therefore, number of heads or tails is a discrete random variable. On the other hand, Continuous random variables may take any value within a range of values. For example, average height of a group of boys could be a non-integer value (5.5, 5.1, 6.3, etc), so it is not a discrete variable, but a continuous random variable . 5.16 Foundations of Financial Management Expand semiconductor capacity Sales Probability PV of cash flow from sales ($ mln) Initial cost ($ mln) NPV ($ mln) High 0.50 $100.0 $60.0 $40.0 Moderate 0.25 $75.0 $60.0 $15.0 Low 0.25 $40.0 $60.0 -$20.0 Expand semiconductor capacity Sales Probability PV of cash flow from sales ($ mln) Initial cost ($ mln) NPV ($ mln)
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This note was uploaded on 01/16/2012 for the course MBA 101 taught by Professor Wormer during the Spring '08 term at Indian Institute Of Management, Ahmedabad.

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Chapter 5 solution - Section A LT Group 9 5.2 Explain how...

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