Question
1)A company is trying to beat the competition to market with a product.They have determined that if they get to market prior to November 1
1)A company is trying to beat the competition to market with a product.They have determined that if they get to market prior to November 1 they will have a revenue stream of $800,000.If they get to market between November 1 and November 30 the revenue stream will be $500,000.If they get to market December 1st or later, the estimated revenue stream is $150,000.The production team has determined the probability of getting to market prior to November 1 is 0.2.The probability of getting to market between November 1 and November 30 is 0.3.The probability of getting to market December 1 or later is 0.5.What is the expected value of this revenue stream?
A.$385,000
B.$483,333
C.$580,000
D.$150,000
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