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A company must choose between 3 mutually exclusive options for the launch of a new product. PE after tax of each of these options is
A company must choose between 3 mutually exclusive options for the launch of a new product. PE after tax of each of these options is given by the following functions, where Q represents the quantity sold in units per year :
The probabilities of the quantity sold are given by the following distributions:
Make a recommendation to the company. Determine the probability of having made the wrong choice.
Option A: PE = -50 000 + 50Q Option B: PE = -60 000 + 70Q Option C: PE = -30 000 + 40Q Q 500 1 000 Option A 25% 40% 35% Option B 10% 60% 30% Option C 40% 20% 40% 1 500 Option A: PE = -50 000 + 50Q Option B: PE = -60 000 + 70Q Option C: PE = -30 000 + 40Q Q 500 1 000 Option A 25% 40% 35% Option B 10% 60% 30% Option C 40% 20% 40% 1 500Step by Step Solution
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