Market Research Assignment

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February 19th, 2020

Baby Pty Ltd. is planning to launch a new brand of makeup products. Based on market research, if sales are high they can make a profit of $21.6 million per year. If sales are ' so so they can make a profit of $5.4 million per year. Finally, if sales are low they can lose $2.9 million per year.

The probability that sales will be high is 0.55. The probability that sales will be so so' is 0.22. Calculate the variance of profit for the new brand of makeup products (in $ millions). Give your answer to two decimal places.

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