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Tyson Manufacturing (a maker of industrial products) is interested in marketing a new product. The company must decide whether to manufacture this product on its
Tyson Manufacturing (a maker of industrial products) is interested in marketing a new product. The company must decide whether to manufacture this product on its own or outsource to a subcontractor to manufacture it. Below are two tables that represent the information related to the estimated probability distribution of the cost of one unit of this product under each alternative Cost under "Make" alternative Cost per unit $40 $45 $50 $55 Cost under "Buv" alternative Probabilit 0.35 0.30 0.25 0.10 Cost per unit $40 $45 $50 $55 Probabilit 0.15 0.20 0.30 0.35 Assuming that Tyson seeks to minimize the expected unit cost of manufacturing of buying the new product, should the company make the new product or buy it from a subcontractor? Show your work
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