Mathematics, 15.07.2019 02:00, jdodger5165
Amanufacturer plans on building a better mousetrap. there is a 60% chance the mouse trap will produce a profit of $200,000 for the company, a 20% chance of a $100,000 profit, and a 20% chance the company will lose $200,000. based on this information, should the company build the mousetrap? a) the expected value is $70,000, so the company should build the mousetrap. b) the expected value is $85,000, so the company should build the mousetrap. c) the expected value is $100,000, so the company should build the mousetrap. d) the expected value is -$70,000, so the company should not build the mousetrap.
Answers: 1
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