Question
Jaiffer is trying to determine which store he should purchase to expand his business. He did some research to determine how much profit he could
Jaiffer is trying to determine which store he should purchase to expand his business. He did some research to determine how much profit he could earn at each store. Store A has a 60% chance of generating OMR 200,000 in annual profit and a 40% chance of generating OMR 250,000. Store B has a 70% chance of generating OMR 300,000 and a 30% chance of generating OMR 150,000.
1. What is the expected value (EV) for Store A and Store B receptively?
a-Store A: OMR 200,000 and Store B: OMR 250,000
b-Store A: OMR 20,000 and Store B: OMR 25,000
c-Store A: OMR 220,000 and Store B: OMR 255,000
d-Store A: OMR 22,000 and Store B: OMR 55,000
2. Which store should Jaiffer choose based on the expected value method?
a-Store B
b-Store A
c-Neither Store A nor Store B
d-Both store A and Store B
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