Lola is in the process of forecasting the sales growth rate for an early-stage venture specilizing in the production of durable running shoes. Lola predicts a 0.15 probability of an 85% growth in sales, a 0.2 probability of a 20% growth in sales, a 0.45 probability of a 10% growth in sales, nd a 0.20 probability of a 20% decrease in sales. What is the expected sales growth rate of the venture?

Respuesta :

Answer:

Step-by-step explanation:

Expected growth =  0.15*85 + 0.20 *20 + 0.45*10+0.20 * -20

= 17.25%.