A company must decide to build a large or small plant to get the new market opportunities. A large plant will cost $20000 to build while a small plant will cost only $10000. The company's best estimate of discrete distribution of sales is Favorable market : Probability is 0.6 Unfavorable market : Probability is 0.4 A large plant with favorable market would yield $200000 A large plant with unfavorable market would lose $180000 * A small plant with favorable market would yield $100000 A small plant with unfavorable market would lose $20000 Using Expected value decision criterion to make the decision