Which option should Patrick choose to maximize income assuming there is a 40% probability that 70 units will be sold and a 60% probability that 40 units will be sold?
A) Options two and three are equivalent.
B) All options maximize income equally.
C) Option one
D) Option two
E) Option three

Question

Quizplus · Accepted Answer

Option three maximizes income because it likely offers the best expected value given the probabilities and unit sales.

Which Option Should Patrick Choose to Maximize Income Assuming There