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A company is deciding whether to invest in a big, medium or small machine. Demand for the products being made may be high (probability 0.3) medium (probability 0.3) or low (probability 0.4). The expected profits from production using each of the three machines (in $'000) at the three levels of demand are as follows.
The machine with the greatest expected value is : A. Impossible to determine. B. Small machine. C. Big machine. D. Medium machine. |