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A company must choose between 3 mutually exclusive options for the launch of a new product. PE after tax of each of these options is given by the following functions, where Q represents the quantity sold in units per year : Option A: PE = -50 000+500 Option B: PE = -60 000 + 700 Option C: PE=-30 000+400 The probabilities of the quantity sold are given by the following distributions: Q 500 1000 1500 Option A 25% 40% 35% Option B 10% 60% 30% Option C 40% 20% 40% Make a recommendation to the company. Determine the probability of having made the wrong choice.

A company must choose between 3 mutually exclusive options for the launch of a new product. PE after tax of each of these options is given by the following functions, where Q represents the quantity sold in units per year : Option A: PE = -50 000+500 Option B: PE = -60 000 + 700 Option C: PE=-30 000+400 The probabilities of the quantity sold are given by the following distributions: Q 500 1000 1500 Option A 25% 40% 35% Option B 10% 60% 30% Option C 40% 20% 40% Make a recommendation to the company. Determine the probability of having made the wrong choice.

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter13: Probability And Calculus
Section13.3: Special Probability Density Functions
Problem 46E
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A company must choose between 3 mutually exclusive options for the launch of a new product. PE after tax of each of these options is given by the following functions, where Q represents the quantity sold in units per year: Option A: PE = -50 000+500 Option B: PE = -60 000 + 70Q Option C: PE=-30 000+400 The probabilities of the quantity sold are given by the following distributions: Q Option A Option B Option C 500 25% 10% 40% 1000 40% 60% 20% 1500 35% 30% 40% Make a recommendation to the company. Determine the probability of having made the wrong choice.
Transcribed Image Text:A company must choose between 3 mutually exclusive options for the launch of a new product. PE after tax of each of these options is given by the following functions, where Q represents the quantity sold in units per year: Option A: PE = -50 000+500 Option B: PE = -60 000 + 70Q Option C: PE=-30 000+400 The probabilities of the quantity sold are given by the following distributions: Q Option A Option B Option C 500 25% 10% 40% 1000 40% 60% 20% 1500 35% 30% 40% Make a recommendation to the company. Determine the probability of having made the wrong choice.
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