If General Motors expects profits of $50 million in a booming economy,what is the expected profit during a recession if this is the only other possibility and the overall expected profit is $35 million? The probability of a recession is 70%.
A) $35.00 million
B) $25.00 million
C) $23.45 million
D) $39.50 million
E) $28.57 million

Question

Quizplus · Accepted Answer

The Answer is E

If General Motors Expects Profits of $50 Million in a Booming