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The J . R . Ryland Computer Company is considering a plant expansion to enable the company to begin production of a new computer product.
The J R Ryland Computer Company is considering a plant expansion to enable the company to begin production of a new computer product. The company's president must determine whether to make the expansion a medium or largescale project. Demand for the new product is uncertain, which for planning purposes may be low demand, medium demand, or high demand. The probability estimates for demand are and respectively. Letting and indicate the annual profit in thousands of dollars, the firm's planners developed the following profit forecasts for the medium and largescale expansion projects.
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