Answer: Cola is more profitable over Coffee
Step-by-step explanation:
E(cola) = 0.3 * 1500 + 0.7 * 5000
E(cola) = 450 + 3500
E(cola) = 3950
E(coffee) = 0.3 * 4000 + 0.7 * 1000
E(coffee) = 1200 + 700
E(coffee) = 1900
From the decision tree which is attached, and the calculations above, it would be advised that the firm should focus on Cola, since it has a higher expected revenue of $3950, compared to the expected revenue of $1900 for coffee.
See the attached image for the decision tree
Answer:
Step-by-step explanation:
The method of variable substitution is a way of solving a system of equations. It involves solving one equation for a variable and then substituting in the expression that represents the value of the solved variable into the other equation. After doing so, one can solve for the unknown variable and then backsolve for the other variable.
In this system, the second equation is already solved for (y), thus one can substitute that expression into the other equation in the system.
Now solve using inverse operations,
Backsolve to find the value of (y), substitute in the value of (x), and solve for the value of (y).
Substitute,
Solve,
Thus, the answer to this system of equations is the following, .