There Are Three Equally Likely States of Nature (High, Medium

question 60

Multiple Choice

There are three equally likely states of nature (High, Medium, and Low demand) . If the large factory will post profits of $50,000, $25,000, and - $10,000 under these states of nature, respectively, what is the EMV of the factory?

• A) $50,000
• B) $25,000
• C) $28,333.33
• D) $21,666.67
• E) $2,166.67

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Definitions:

Work Performed

The tasks or duties carried out by an individual or group in a job, profession, or project.

Influence Attempt

Efforts made by individuals or groups to affect or change the behavior, attitudes, or perceptions of others in a specific way.

Duty

An obligation or responsibility expected of an individual or entity.

Patterns of Activity

Regular behaviors or actions that are characteristic of an individual or group, usually observed over a period of time.