How do you Evaluate 3f(2)
1 answer:
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Answer: Option 'A' is correct.
Step-by-step explanation:
Since we have given that
30% chance that the company will lose $30000.
40% chance of a break even that there is no loss and no profit.
30% chance that the company will profit $ 60000.
As we know the formula for "Expectation":
So, Expected value will be
Expected value is $9000. So, the company should proceed with the project.
Hence, Option 'A' is correct.