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Please show work because I can't find this in the stupid book! Under normal conditions (75% probability), Financing Plan A will produce $25,000 higher return
Please show work because I can't find this in the stupid book!
Under normal conditions (75% probability), Financing Plan A will produce $25,000 higher return than Plan B. Under tight money conditions (25% probability), Plan A will produce $33,000 less than Plan B. What is the expected value of returns?
Under normal conditions (60% probability), Plan A will produce $38,000 higher return than Plan B. Under tight money conditions (40% probability), Plan A will produce $116,000 less than Plan B. What is the expected value of returns?
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