A Company Is Considering Three Alternatives to Deal with Extra

question 1

Multiple Choice

A company is considering three alternatives to deal with extra work load (in $100,000) as shown below.If the likelihoods of easy, moderately difficult and extremely difficult are 0.2, 0.4 and 0.4, respectively, what is the expected value (in $100,000) with perfect information?

• A)2.68
• B)2.94
• C)0.26
• D)0.16
• E)None of the above.

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Definitions:

Local Industries

Economic activities or sectors focused on producing goods or services predominantly catered to the domestic or regional market.

Export Promotion

A strategy or policy aimed at encouraging the sale of goods and services to foreign countries to boost the exporting country's economic base.

Manufacture Goods

Products that have been processed or transformed from raw materials into finished goods ready for sale.

MDG Concerns

Pertains to issues or matters that directly impact the progress or achievement of the Millennium Development Goals, which are a set of eight global development targets.