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Garys Pipe and Steel company expects sales next year to be $700,000 if the economy is strong, $400,000 if the economy is steady, and $250,000
Garys Pipe and Steel company expects sales next year to be $700,000 if the economy is strong, $400,000 if the economy is steady, and $250,000 if the economy is weak. Gary believes there is a 20 percent probability the economy will be strong, a 50 percent probability of a steady economy, and a 30 percent probability of a weak economy.
What is the project sales for next year?
a.$400,000
b.$415,000
c.$475,000
d. $500,000
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