You are on the board of directors for Sew and Tell, an up and coming apparel brand focusing on producing t-shirts with a positive message. The company is looking to ramp up production and has hired an independent consulting group to evaluate the profitability of either a medium or large scale expansion. Your boss, the company president Jack Pott, has sent you the following еmail: Board of Directors Member, The consulting group has completed the analysis. The following table breaks down the results with us pursuing either a medium or large scale expansion. It gives low, medium, and high projections, the associated amount of profits (in thousands of $), and the probability of each putcome happening. Medium-Scale Expansion Profit 50 Probability .2 Large-Scale Expansion Profit Probability Low .2 Medium 150 .5 100 .5 High 200 .3 300 .3 Personally, I would love to hit the jackpot and reach a profit of $300,000, but our goal as a company is to maximum profit in the least risky way. Taking into account both the risks and rewards, do you think we should pursue a medium-scale expansion or a large-scale expansion?
You are on the board of directors for Sew and Tell, an up and coming apparel brand focusing on producing t-shirts with a positive message. The company is looking to ramp up production and has hired an independent consulting group to evaluate the profitability of either a medium or large scale expansion. Your boss, the company president Jack Pott, has sent you the following еmail: Board of Directors Member, The consulting group has completed the analysis. The following table breaks down the results with us pursuing either a medium or large scale expansion. It gives low, medium, and high projections, the associated amount of profits (in thousands of $), and the probability of each putcome happening. Medium-Scale Expansion Profit 50 Probability .2 Large-Scale Expansion Profit Probability Low .2 Medium 150 .5 100 .5 High 200 .3 300 .3 Personally, I would love to hit the jackpot and reach a profit of $300,000, but our goal as a company is to maximum profit in the least risky way. Taking into account both the risks and rewards, do you think we should pursue a medium-scale expansion or a large-scale expansion?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
![You are on the board of directors for Sew and Tell, an up and coming apparel brand focusing on
producing t-shirts with a positive message. The company is looking to ramp up production and
has hired an independent consulting group to evaluate the profitability of either a medium or
large scale expansion. Your boss, the company president Jack Pott, has sent you the following
email:
Board of Directors Member,
The consulting group has completed the analysis. The following table breaks down the results
with us pursuing either a medium or large scale expansion. It gives low, medium, and high
projections, the associated amount of profits (in thousands of $), and the probability of each
outcome happening.
Medium-Scale Expansion
Profit
50
Large-Scale Expansion
Profit
Probability
Probability
Low
.2
.2
Medium
150
.5
100
.5
High
200
.3
300
.3
Personally, I would love to hit the jackpot and reach a profit of $300,000, but our goal as a
company is to maximum profit in the least risky way. Taking into account both the risks and
rewards, do you think we should pursue a medium-scale expansion or a large-scale expansion?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5d7c6df9-9072-40bc-ad85-7ace55fd8504%2F3a4b1b83-9414-4433-b281-971cd60f3598%2F8zpi6dj_processed.png&w=3840&q=75)
Transcribed Image Text:You are on the board of directors for Sew and Tell, an up and coming apparel brand focusing on
producing t-shirts with a positive message. The company is looking to ramp up production and
has hired an independent consulting group to evaluate the profitability of either a medium or
large scale expansion. Your boss, the company president Jack Pott, has sent you the following
email:
Board of Directors Member,
The consulting group has completed the analysis. The following table breaks down the results
with us pursuing either a medium or large scale expansion. It gives low, medium, and high
projections, the associated amount of profits (in thousands of $), and the probability of each
outcome happening.
Medium-Scale Expansion
Profit
50
Large-Scale Expansion
Profit
Probability
Probability
Low
.2
.2
Medium
150
.5
100
.5
High
200
.3
300
.3
Personally, I would love to hit the jackpot and reach a profit of $300,000, but our goal as a
company is to maximum profit in the least risky way. Taking into account both the risks and
rewards, do you think we should pursue a medium-scale expansion or a large-scale expansion?
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