Our friend Joanne is now a highly successful marketing wizard!She is making a marketing presentation to the board of Jussaynoe Pharmaceuticals, who want to sell the anti-math anxiety drug SHOVITALL to the public.Joanne has two marketing plans she has come up with for the board's decision:

Plan A :a marketing plan that nets $30 million if successful (probability 0.8) and will lose $6 million if unsuccessful (probability 0.2)

Plan B :a marketing plan that nets $44 million if successful (probability 0.6) and will lose $10 million if unsuccessful (probability 0.4)

a.Construct an expected value payoff table for the two marketing plans A and B :

Marketing Plan

X_success

P_success

X_unsuccessful

P_unsuccessful

A

B

b.Determine the expected values of each marketing plan (show your work!!).

E(A) = ______________E(B) = _______________

c.Based on the expected return, which of Joanne's marketing plans should be approved by the board?

Answer:___________________________