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A company is considering the launch of a new product. Based on prior experience in this industry, the manager knows that there is a probability
A company is considering the launch of a new product. Based on prior experience in this industry, the manager knows that there is a probability of 0.65 that the product will be successful and bring a net profit of $3.2 million. However, there is also a probability of 0.35 under which the launch will be unsuccessful and the firm will suffer a loss of $1.5 million. The net profit is zero if the new product is not launched. Please show the solution of the probability.
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