16. Matt Fitzpatrick has invented a new battery component system for electric cars. He is considering selling the rights to his new invention to a corporation. The corporation is promising 1) $380,000 or b) 5% of the profits. Which option should he choose based upon a consideration of the probabilities. First, he needs to consider if the invention will be successful and then if successful, will it be purchased by the general public There is a 40% probability that the market testing will be unsuccessful. If the product doesn't pass market testing, the project will not proceed. If there is a successful market testing, the project will move forward to mass production. There is a 75% probability that the project will be profitability with an anticipated profit of $20 miltion. Which of the following choices indicates the correct choice and the decision rule for making the decision. A. $380,000, which is greater than the expected profits of $300,000 B. $380,000, which is greater than the expected profits of $150,000 C. 5% of the profits which is expected to be $450,000 D. 5% of the profits which are expected to be $400,000 16. Matt Fitzpatrick has invented a new battery component system for electric cars. He is considering selling the rights to his new invention to a corporation. The corporation is promising 1) $380,000 or b) 5% of the profits. Which option should he choose based upon a consideration of the probabilities. First, he needs to consider if the invention will be successful and then if successful, will it be purchased by the general public There is a 40% probability that the market testing will be unsuccessful. If the product doesn't pass market testing, the project will not proceed. If there is a successful market testing, the project will move forward to mass production. There is a 75% probability that the project will be profitability with an anticipated profit of $20 miltion. Which of the following choices indicates the correct choice and the decision rule for making the decision. A. $380,000, which is greater than the expected profits of $300,000 B. $380,000, which is greater than the expected profits of $150,000 C. 5% of the profits which is expected to be $450,000 D. 5% of the profits which are expected to be $400,000