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Mathematics, 02.02.2020 20:46 Yek
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.
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