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You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a
You are a hotel manager and you are considering four projects that yield different payoffs, depending upon whether there is an economic boom or a recession. The potential payoffs and corresponding payoffs are summarized in the accompanying table. Project Red Boom (70%) Recession (30%) $70 $60 Orange $60 $70 Green $80 $80 Blue $100 $100 The expected value of project Red is
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