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The table below shows the net income for several choices (choice 1, choice 2, and choice 3) if certain outcomes happen (outcome 1, outcome 2, and outcome 3). You do not know which outcome will occur. You estimate the probability of outcome 1 is 30%, the probability of outcome 2 is 37%, and the probability of outcome 3 is 33%. Using the expected value decision-making method, answer the questions below: Outcome 1 Outcome 2 Outcome 3 Choice 1 65 83 62 Choice 2 69 70 73 Choice 3 84 82 63 What is the expected value for choice 1? (round to nearest 0.01) What is the expected value for choice 2? (round to nearest 0.01) What is the expected value for choice 3? (round to nearest 0.01) What is the best decision using the expected value decision-making method? CChoice 1 Choice 2 Choice 3 Outcome 1 Outcome 2 Outcome 3

The table below shows the net income for several choices (choice 1, choice 2, and choice 3) if certain outcomes happen (outcome 1, outcome 2, and outcome 3). You do not know which outcome will occur. You estimate the probability of outcome 1 is 30%, the probability of outcome 2 is 37%, and the probability of outcome 3 is 33%. Using the expected value decision-making method, answer the questions below: Outcome 1 Outcome 2 Outcome 3 Choice 1 65 83 62 Choice 2 69 70 73 Choice 3 84 82 63 What is the expected value for choice 1? (round to nearest 0.01) What is the expected value for choice 2? (round to nearest 0.01) What is the expected value for choice 3? (round to nearest 0.01) What is the best decision using the expected value decision-making method? CChoice 1 Choice 2 Choice 3 Outcome 1 Outcome 2 Outcome 3

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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please answer all parts of the question within 30 minutes with detailed explanation. Make sure calculation form part of the answer and are in details for better understanding. If calculations are not shown or are poorly done i will surely give negative ratings.
The table below shows the net income for several choices (choice 1, choice 2, and choice 3) if certain outcomes happen (outcome 1, outcome 2, and outcome 3). You do not know which outcome will occur. You estimate the probability of outcome 1 is 30%, the probability of outcome 2 is 37%, and the probability of outcome 3 is 33%. Using the expected value decision-making method, answer the questions below: Outcome 1 Outcome 2 Outcome 3 Choice 1 65 83 62 Choice 2 69 70 73 Choice 3 84 82 63 What is the expected value for choice 1? (round to nearest 0.01) What is the expected value for choice 2? (round to nearest 0.01) What is the expected value for choice 3? (round to nearest 0.01) What is the best decision using the expected value decision-making method? Choice 1 CChoice 2 CChoice 3 Outcome 1 COutcome 2 Outcome 3
Transcribed Image Text:The table below shows the net income for several choices (choice 1, choice 2, and choice 3) if certain outcomes happen (outcome 1, outcome 2, and outcome 3). You do not know which outcome will occur. You estimate the probability of outcome 1 is 30%, the probability of outcome 2 is 37%, and the probability of outcome 3 is 33%. Using the expected value decision-making method, answer the questions below: Outcome 1 Outcome 2 Outcome 3 Choice 1 65 83 62 Choice 2 69 70 73 Choice 3 84 82 63 What is the expected value for choice 1? (round to nearest 0.01) What is the expected value for choice 2? (round to nearest 0.01) What is the expected value for choice 3? (round to nearest 0.01) What is the best decision using the expected value decision-making method? Choice 1 CChoice 2 CChoice 3 Outcome 1 COutcome 2 Outcome 3
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