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A company is developing two products and has to decide which to finalize, according to the expected value. Product A: cost development E2 000 000;

A company is developing two products and has to decide which to finalize, according to the expected value.

Product A: cost development E2 000 000; probabilities of sales: 60% for 5 000 000, 20% for 3 000 000, 20% for 1 500 000.

Product B: cost development 1 200 000: probabilities of sales: 40% for 4 000 000, 50% for 2 000 000, 10% for 1 500 000.

Which one should be chosen?

Select one: a. ProductB

b. Both products have the same expected value

c. Neither d. Product A

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