Business, 23.03.2021 01:00 finessinsam

You are a t-shirt designer and have a new design you are excited about. Another company offers to buy your design for $6,000. Or you could produce and sell your own t-shirts with this new design. You estimate you have a 25% chance your t-shirt is a huge success, a 20% chance of your t-shirt is marginally liked and earns gross revenues of $4,000, and a 55% chance your t-shirt is a failure and earns gross revenue of $500. If your t-shirt is a huge success, there is a 50% chance it will earn gross revenues of $25,000, a 15% chance it will earn gross revenues of $30,000, and a 35% chance it will earn gross revenues of $40,000. The cost to produce the t-shirts yourself is $3,000. Assume you make decisions using expected value, and you make the optimal decision. What is your expected earnings (in $) from your new t-shirt design

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You are a t-shirt designer and have a new design you are excited about. Another company offers to bu...

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