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onald Duck is trying to decide whether he should purchase a small, medium, or large new bus for the ckey Mouse Club House. He estimates that the annual profits (in $000) will vary depending upon wheth ssenger demand is low, medium, or high, as follows: Bus Small Medium Large O $15,000 $69,000 O $87,000 he feels the chances of low, medium, and high demand are 30 percent, 30 percent, and 40 percent espectively, what is the expected annual profit for the bus that he will decide to purchase? O $72,000 DEMAND LOW 50 40 20 O $61,000 MEDIUM 60 80 50 HIGH 70 90 120

onald Duck is trying to decide whether he should purchase a small, medium, or large new bus for the ckey Mouse Club House. He estimates that the annual profits (in $000) will vary depending upon wheth ssenger demand is low, medium, or high, as follows: Bus Small Medium Large O $15,000 $69,000 O $87,000 he feels the chances of low, medium, and high demand are 30 percent, 30 percent, and 40 percent espectively, what is the expected annual profit for the bus that he will decide to purchase? O $72,000 DEMAND LOW 50 40 20 O $61,000 MEDIUM 60 80 50 HIGH 70 90 120

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Donald Duck is trying to decide whether he should purchase a small, medium, or large new bus for the Mickey Mouse Club House. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, medium, or high, as follows: Bus DEMAND LOW 50 40 20 Small Medium Large O $15,000 O $69,000 If he feels the chances of low, medium, and high demand are 30 percent, 30 percent, and 40 percent respectively, what is the expected annual profit for the bus that he will decide to purchase? O $87,000 O $72,000 MEDIUM O $61,000 60 80 50 HIGH 70 90 120
Transcribed Image Text:Donald Duck is trying to decide whether he should purchase a small, medium, or large new bus for the Mickey Mouse Club House. He estimates that the annual profits (in $000) will vary depending upon whether passenger demand is low, medium, or high, as follows: Bus DEMAND LOW 50 40 20 Small Medium Large O $15,000 O $69,000 If he feels the chances of low, medium, and high demand are 30 percent, 30 percent, and 40 percent respectively, what is the expected annual profit for the bus that he will decide to purchase? O $87,000 O $72,000 MEDIUM O $61,000 60 80 50 HIGH 70 90 120
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