If the values (Revenue - Cost) for the option for a retail store to move to a new location associated with the events strong growth and weak growth are $ 200000 and $100000 respectively, calculate the expected value for the option to move to a new location. The probability of strong growth = 55%.

If the values (Revenue - Cost) for the option for a retail store to move to a new location associated with the events strong growth and weak growth are $ 200000 and $100000 respectively, calculate the expected value for the option to move to a new location. The probability of strong growth = 55%.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 46P

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