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Given Your Answers to Questions 51 Through 55,would You Invest

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Given your answers to Questions 51 through 55,would you invest in this project?
Suppose that GM earns a $4000 profit each time a person buys a car.We want to determine how the expected profit earned from a customer depends on the quality of GM's cars.The customer is assumed to buy a new car every five years,for a total of 10 cars through her lifetime.The customer will keep buying GM cars so long as they are satisfied with them.The probability that the customer will be satisfied with her GM car is 80%.If she is not satisfied with her GM car,she will buy another brand (we'll call all other brands cumulatively "Toyota").The probability that she is satisfied with "Toyota" is 85%.


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Action Decisions

Decisions that lead to specific actions aimed at achieving objectives or solving problems within an organization or project.

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