Where should the corporation establish the restaurant based on the predicted profit?

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...
icon
Related questions
Question
A corporation is selecting where to develop a restaurant with a capital of Php 2,000,000. They can put it in the center of a business district to raise prices, but it will have to compete with other restaurants in the area. They could even establish it in front of a school, where they would have to charge less sincethey would be competing with fewer restaurants.The company analyzed the considerations and data shows that building a restaurant in a commercial district has an 80% chance of earning Php 1 million and a 20% chance of losing the entire capital, whereas building a restaurant in front of a school has a 95% chance of earning Php 500 thousand and a 5% chance of losing the entire capital. Where should the corporation establish the restaurant based on the predicted profit?
Expert Solution
steps

Step by step

Solved in 3 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
College Algebra
College Algebra
Algebra
ISBN:
9781938168383
Author:
Jay Abramson
Publisher:
OpenStax