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The operations manager for a local bus company wants to decide whether he should purchase a small, medium, or large new bus for his company.
The operations manager for a local bus company wants to decide whether he should purchase a small, medium, or large new bus for his company. He estimates that the annual profits in $ will vary depending upon whether passenger demand is low, medium, or high, as follows:
tableBusDemand,Low,Medium,High,SmallMediumLarge
If he feels the chances of low, medium, and high demand are percent, percent, and percent respectively, what is the expected annual profit for the bus that he will decide to purchase?
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