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QUESTION FOUR [20] Company A is attempting to predict future profit from a new project and the following probability distribution has been prepared: State

QUESTION FOUR [20] Company A is attempting to predict future profit from a new project and the following probability distribution has been prepared: State Probability Profit 1 0.10 -R150 000 2 0.40 -R20 000 3 0.40 R40 000 4 0.10 R300 000 Expected value R23 000 Required: Should the company accept the new project?

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