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?

49%

Explanation:

Expected sales growth rate of the venture is the summation of the weighted growth is sales for all predictions made by Lola.

Expected sales growth rate = ∑(

Where P(i) is the probability of a given predicted growth in sales, and G(i) is the predicted growth in sales.

Expected growth in sales of the venture =

(0.2*80%) + (0.3*60%) + (0.4*40%) + (0.1*-10%)

=16%+18%+16%-1%

=49%

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi