​Use the Following Information for Question

question 83

Multiple Choice

​Use the following information for question
Transcendent Technologies is deciding between developing a complicated thought-activated software,or a simple voice-activated software.Since the thought-activated software is complicated,it only has a 30% chance of actually going through to a successful launch,but would generate revenues of $50million if launched.The voice-activated software is simple and hence has a 80% chance of being launched but only generates a revenue of $10million.The complicated technology costs 10million,whereas the simple technology costs 2million.
-​The firm learns that the probability of launch estimated for the voice activated software was too optimistic and instead is actually 65%.Is it still worth for the company to develop the simplified software?

• A)​No,because the expected return is lower
• B)No,because the expected return is higher
• C)Yes,because the expected return is higher
• D)​Yes,because the expected return is lower

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Definitions:

Relative Class Frequency

The proportion of observations within a statistical data class compared to the total number of observations.

Observations

The individual data points or measured instances collected during a study or experiment.

Frequency Distribution

A mathematical function showing the number of instances in which a variable attains each of its possible values.

Relative Frequency Histogram

A type of histogram that displays the relative frequencies, or proportions, of data points within specified intervals.