Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former residents. He thinks that if the market is good he can sell 400 copies of the elegant version at $150 each. If the market is not good, he will sell only 350 at $110 each. He can make a deluxe version of the same drawing instead. He feels that if the market is good he can sell 500 copies of the deluxe version at $100 each. If the market is not good, he will sell only 400 copies at $90 each. In either case, production costs will be approximately $45,000. He can also choose to do nothing at this time. If he believes there is a 60% probability of a good market, what should he do? A. Make the deluxe version B. Nothing C. Make the elegant version
Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former residents. He thinks that if the market is good he can sell 400 copies of the elegant version at $150 each. If the market is not good, he will sell only 350 at $110 each. He can make a deluxe version of the same drawing instead. He feels that if the market is good he can sell 500 copies of the deluxe version at $100 each. If the market is not good, he will sell only 400 copies at $90 each. In either case, production costs will be approximately $45,000. He can also choose to do nothing at this time. If he believes there is a 60% probability of a good market, what should he do? A. Make the deluxe version B. Nothing C. Make the elegant version
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter14: Counting And Probability
Section14.CT: Chapter Test
Problem 5CT: A commuter must travel from Ajax to Barrie and back every day. Four roads join the two cities. The...
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Residents of Mill River have fond memories of ice skating at a local park. An artist has captured the experience in a drawing and is hoping to reproduce it and sell framed copies to current and former residents. He thinks that if the market is good he can sell
400
copies of the elegant version at
$150
each. If the market is not good, he will sell only
350
at
$110
each. He can make a deluxe version of the same drawing instead. He feels that if the market is good he can sell
500
copies of the deluxe version at
$100
each. If the market is not good, he will sell only
400
copies at
$90
each. In either case, production costs will be approximately
$45,000.
He can also choose to do nothing at this time. If he believes there is a
60%
probability of a good market, what should he do?Make the deluxe version
Nothing
Make the elegant version
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