Given the payoff table below, determine the expected value and size of warehouse that would be built, given a probability of 0.7 and 0.3 to the high and low demands, respectively.
A) $8 million, small warehouse
B) $5 million, medium warehouse
C) $18.7 million, large warehouse
D) $12 million, medium warehouse
E) $22 million, large warehouse

Question

Given the payoff table below, determine the expected value and size of warehouse that would be built, given a probability of 0.7 and 0.3 to the high and low demands, respectively. 
A) $8 million, small warehouse 
B) $5 million, medium warehouse 
C) $18.7 million, large warehouse 
D) $12 million, medium warehouse 
E) $22 million, large warehouse

Quizplus · Accepted Answer

The Answer of Given the payoff table below, determine the expected value and size of warehouse that would be built, given a probability of 0.7 and 0.3 to the high and low demands, respectively. 
A) $8 million, small warehouse 
B) $5 million, medium warehouse 
C) $18.7 million, large warehouse 
D) $12 million, medium warehouse 
E) $22 million, large warehouse

Given the Payoff Table Below, Determine the Expected Value and Size