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I'm stuck on this study guide, could I get some assistance? 14) Your company is considering developing one of two toy models. The projected profits

I'm stuck on this study guide, could I get some assistance?

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14) Your company is considering developing one of two toy models. The projected profits are shown in the tables below. Projected Profit for A Probability Projected Profit B Probability 750,000 0.15 550,000 0.50 100,000 0.70 150,000 0.25 -250,000 0.15 300,000 0.25 a) Calculate the expected profits for each toaster. Toy A: 145,000 Toy B: 237, 500 b) Which toaster is the better choice for development based on expected profits? (Circle) Toy A Toy B c) If you're a CEO that is an optimist, which toaster is the better choice? (Circle) largest pay out you can Toy A Toy B see . 15) In the game of Craps, a pair of dice are rolled and people bet on the outcome. For example, you can bet $1 that the dice will total 2. If you win, you receive $30 (your $1 bet, plus $29). If you lose, you lose the $1 that you bet. a) You decide to play one round of craps and bet $1 on 2. Construct a probability distribution for your profit. (Use 4 decimal places for the probabilities.) Profit = Rev - cost Outcome Profit Probability WIN 30 LOSE - 1 b) Calculate your expected profit for a single bet of $1 on 2. (Give 2 decimal places) c) If you bet a $100 chip on 2, what is your expected profit? d) Is this a fair game? Explain

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