Question
A company must choose between 3 mutually exclusive options for the launch of a new product. PE after tax of each of these options
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: Option A: PE=-50 000 + 500 Option B: PE=-60 000 + 700 Option C: PE=-30 000 + 400 The probabilities of the quantity sold are given by the following distributions: Q Option A Option B Option C 500 25% 10% 40% 1000 40% 60% 20% 1500 35% 30% 40% Make a recommendation to the company. Determine the probability of having made the wrong choice.
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