Question
Suppose a firm has turned down an offer to pay 10000 euros to be able to take part in an exhibition which might generate new
Suppose a firm has turned down an offer to pay 10000 euros to be able to take part in an exhibition which might generate new sales for 100000 euros, (with probability 0.3). Would this firm be willing to take part in a less important expo, by paying 5000 euros, knowing that this might bring about new sales for 50000 euros with probability 0.4? Please motivate the results clearly.
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Risk Management And Insurance
Authors: Scott E Harrington, Greg Niehaus
2nd Edition
0072339705, 9780072339703
