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The Madison Company has decided to introduce a new product. The company estimates that there is a 30 percent probability that the product will contribute $700,000 to profits, a 30 percent probability that it will contribute $200,000, and a 40 percent probability that the contribution will be a negative $400,000. The expected contribution of the new product is A. $500,000. B. $166,667. C. $110,000. D. $380,000. |