Question
Two different designs on a new line of winter jackets for the coming winter are available for your manufacturing plants. Your profit (in thousands of
Two different designs on a new line of winter jackets for the coming winter are available for your
manufacturing plants. Your profit (in thousands of rands) will depend on the taste of the consumers
when winter arrives. The probability of the three possible different tastes of the consumers and the
corresponding profits are presented in the following table.
Probability Taste Design A Design B
Probability | Taste | Design A | Design B |
0.2 0.5 0.3 | more conservative no change more liberal | 180 230 350 | 520 310 270 |
Referring to table, what is your expected profit when Design B is chosen?
(1) R256000
(2) R340000
(3) R180000
(4) R520000
(5) R350000
Answer give was (2) ?
Please can someone explain
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