A store specializing in mountain bikes is to open in one of two malls. If the first mall
Chapter 11, Problem 11(choose chapter or problem)
A store specializing in mountain bikes is to open in one of two malls. If the first mall is selected, the store anticipates a yearly profit of $300,000 if successful and a yearly loss of $100,000 otherwise. The probability of success is \(\frac{1}{2}\). If the second mall is selected, it is estimated that the yearly profit will be $200,000 if successful; otherwise, the annual loss will be $60,000. The probability of success at the second mall is \(\frac{3}{4}\). Which mall should be chosen in order to maximize the expected profit?
Text Transcription:
frac 1 2
frac 3 4
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