Question

I want to open a bakery and I am considering locations at two different shopping centers. Use expected value to determine which location I should use.
Location 1: According to my consultant, if the bakery is successful, I can anticipate an annual profit of $300,000. If it's not successful, I can anticipate an annual loss of $100,000. The probability of success at this location is 0.5.
Location 2: According to my consultant, if the bakery is successful, I can anticipate an annual profit of $200,000. If it's not successful, I can anticipate an annual loss of $60,000. success is 0.75 probabilit

Answer 1

@JayDS, can you help? :)

Answer 2

it may be...
if for expected value then for L1 300000 *0.5 =150000
as its same for L 2 200000 * 0.75 = 150000
but for loss its...
L2; 60000 * 0.25 = 15000
L1 ; 100000 * 0.5= 50000
150000-15000=135000
150000-50000=100000
therefore u should chose land 2

Answer 3

it can also be wrong if it is i am sorry about tht

Answer 4

okay thank you:)

Answer 5

check the answer plz