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Blomange Co is a new fast food delivery company specialising in delivering desserts to your door within 30 minutes of your order. They started out
Blomange Co is a new fast food delivery company specialising in delivering desserts to your door within 30 minutes of your order. They started out operating in the Reading area but have expanded rapidly. The last 10 stores they have opened in areas with similar demographics have achieved the following profits in their first year: Profit () Number of stores 100,000 2 60,000 1 50,000 3 25,000 3 (10,000) 1 Using the expected value criterion, what is the expected profit for the first year in another new store in an area with similar demographics? a. 49,500 b. 48,500 c. 47,500 d. 46,500
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