Mary Beth Clothes is considering opening an additional suburban outlet

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Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $100 per day (expected value) is projected for each of the two locations being evaluated.

 

site A site B

probability cash flow probability cash flow

0.20 $50 0.10 20

0.20 100 0.20 50

0.20 110 0.20 100

0.40 120 0.20 150

0.20 190

expected value $100 expected value $100

 

a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round the final answers to 4 decimal places.)   

Coefficient of

variation  

 

Site A    ..............................

 Site B   ...................................