#15 A company makes electronic gadgets. 2% are faulty, the company doesn't know which ones are faulty until a buyer complains. Suppose the company makes a $80 profit on each sale, but has to refund the sale price and suffers a loss of $11 for every faulty gadget because they have to repair the unit. What is the profit(or loss) the company can expect to make from selling 100 units?. Submit Answer format: Number: Round to: 1 decimal places. unanswered not_submitted Attempts Remaining: 2 Using the EV method, which decision alternative will you chose? a) Sell company b) Form Joint Venture c) Sell software #16 on own Probability Sell Company Form Joint Venture Sell Software on own Answer format: Text Success Submit 0.1 74 Moderate Success Neutral Failure 0.3 0.4 74 74 74 210 180 120 110 420 250 104 -100 unanswered not_submitted Attempts Remaining: 2
#15 A company makes electronic gadgets. 2% are faulty, the company doesn't know which ones are faulty until a buyer complains. Suppose the company makes a $80 profit on each sale, but has to refund the sale price and suffers a loss of $11 for every faulty gadget because they have to repair the unit. What is the profit(or loss) the company can expect to make from selling 100 units?. Submit Answer format: Number: Round to: 1 decimal places. unanswered not_submitted Attempts Remaining: 2 Using the EV method, which decision alternative will you chose? a) Sell company b) Form Joint Venture c) Sell software #16 on own Probability Sell Company Form Joint Venture Sell Software on own Answer format: Text Success Submit 0.1 74 Moderate Success Neutral Failure 0.3 0.4 74 74 74 210 180 120 110 420 250 104 -100 unanswered not_submitted Attempts Remaining: 2
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:#15
A company makes electronic gadgets. 2% are faulty, the company doesn't know which ones are faulty
until a buyer complains. Suppose the company makes a $80 profit on each sale, but has to refund the
sale price and suffers a loss of $11 for every faulty gadget because they have to repair the unit. What is
the profit(or loss) the company can expect to make from selling 100 units?.
Submit
Answer format: Number: Round to: 1 decimal places.
unanswered
not_submitted
Attempts Remaining: 2
Using the EV method, which decision alternative will you chose? a) Sell company b) Form Joint Venture c) Sell software
#16
on own
Probability
Sell Company
Form Joint Venture
Sell Software on own
Answer format: Text
Success
Submit
0.1
74
Moderate Success
Neutral
Failure
0.3
0.4
74
74
74
210
180
120
110
420
250
104
-100
unanswered
not_submitted
Attempts Remaining: 2
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