A company is deciding to set up operations in one of two locations. It is estimated that site A will net $57000 if successful

Question

A company is deciding to set up operations in
one of two locations. It is estimated that site A
will net $57000 if successful (probability 0.22)
and lose $4900 if not (probability 0.78); site B
will net $117000 if successful (probability 0.12)
and lose $5300 if not (probability 0.88).
(a) What is the expected return for Site A?
(b) What is the expected return for Site B?

Kunduz · Accepted Answer

Click to see the answer