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A company is evaluating the introduction of two new products. The success of these products depends on consumer reactions. These can be summarized as good
A company is evaluating the introduction of two new products. The success of these products depends on consumer reactions. These can be summarized as good with probability P(S1)=0.3 and bad, P(S2)=0.7. The estimated income (in thousands of dollars) is presented in the following table:
Decison | S1 | S2 |
Producto 1 | 125 | 60 |
Producto 2 | 105 | 65 |
What is the expected value of product 1 and product 2
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