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How to solve the below:A firm supplies aircraft engines to the government and to private firms. It must decide between two mutually exclusive contracts. If
How to solve the below:A firm supplies aircraft engines to the government and to private firms. It must decide between two mutually exclusive contracts. If it contracts with a private firm, its profit will be $2 million, $.7 million, or $.5 million with probabilities .25, .41, and .34, respectively. If it contracts with the government, its profit will be $4 million or $2.5 million with respective probabilities .45 and .55. Which contract offers the greater expected profit?
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