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Computers and Technology, 24.06.2021 14:00 justin5163

A company is considering making a new product. They estimate the probability that the new product will be successful is 0.75. If it is successful it would generate $240,000 in revenue. If it is not successful, it would not generate any revenue. The cost to develop the product is $196,000. Use the profit (revenue − cost) and expected value to decide whether the company should make this new product.

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