Saturday
August 29, 2015

Homework Help: economics

Posted by Anonymous on Monday, November 15, 2010 at 10:26am.

A company is considering a plan that has different profit results under different conditions. Assuming there is a 20% chance of a boom and 10% chance of a recession, compute the expected value of their plan.
Condition Result
Boom $2,000,000 Profit
Average $800,000 Profit
Recession (700,000) Loss

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

More Related Questions

Members