There are three alternative proposals before a businessman to start a new project: Proposal A: Profit of $. 5 lakh with a probability of 0.6 or a loss of $. 80,000 with a Probability of 0.4. Proposal B: Profit of $. 10 lakh with a probability of 0.4 or a loss of $. 2 lakh with a Probability of 0.6. Proposal C: Profit of $. 4.5 lakh with a probability of 0.8 or a loss of $. 50,000 with a 0.2. If he wants to maximise the profits and minimise the loss, which proposal should he prefer.

There are three alternative proposals before a businessman to start a new project: Proposal A: Profit of $. 5 lakh with a probability of 0.6 or a loss of $. 80,000 with a Probability of 0.4. Proposal B: Profit of $. 10 lakh with a probability of 0.4 or a loss of $. 2 lakh with a Probability of 0.6. Proposal C: Profit of $. 4.5 lakh with a probability of 0.8 or a loss of $. 50,000 with a 0.2. If he wants to maximise the profits and minimise the loss, which proposal should he prefer.

College Algebra

10th Edition

ISBN:9781337282291

Author:Ron Larson

Publisher:Ron Larson

Chapter8: Sequences, Series,and Probability

Section8.7: Probability

Problem 4ECP: Show that the probability of drawing a club at random from a standard deck of 52 playing cards is...

See similar textbooks