You own a high-end salon that is shut down due to the COVID-19 lockdown. You believe salons will reopen in either mid-May, early July or late August.If you reopen in mid-May you anticipate earning an annual profit of $25,000. If you reopen in early July you expect to earn a $15,000 profit and if you cannot reopen until late August you anticipate incurring a loss of $12,000. You think there is 65% chance that salons will reopen in mid-May and a 20% chance they will reopen in early July. Calculate your expected profit or loss.Hint: Set up an expected value table or decision tree.

Question 1 options:

$17,450

$28,000

$19,250

$9,333.33

$22,647.06