Lumina Retail has just bought a chain of appliance stores. Lumina received an offer from Comfort Cubbies to purchase the Wyndham branch store for $120,000. Lumina has determined probability estimates of the store's future profitability, based on historical projections as: P($80,000) = .2, P($100,000) = .3, P($120,000) = .1, and P($140,000) = .4. Your best friend's family owns Lumina and they asked you for advice. What do you recommend? Choose the BEST option. Group of answer choices Yes, sell the branch. Your highest payoff is $140,000. Yes, sell the branch. Your highest payoff is $120,000. No, do not sell the branch. Your highest payoff is $140,000. You need more information to help them decide. No, do not sell the branch. Your highest payoff is $114,000.st payoff is $140,000.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Lumina Retail has just bought a chain of appliance stores. Lumina received an offer from Comfort Cubbies to purchase the Wyndham branch store for $120,000. Lumina has determined
Your best friend's family owns Lumina and they asked you for advice. What do you recommend? Choose the BEST option.
Given:
Offer price of the store = $120000
The future probability estimates with associated probabilities are
| Price | Probability |
| $80000 | 0.2 |
| $100000 | 0.3 |
| $120000 | 0.1 |
| $140000 | 0.4 |
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