Advanced Engineering Mathematics
10th Edition
ISBN: 9780470458365
Author: Erwin Kreyszig
Publisher: Wiley, John & Sons, Incorporated
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Transcribed Image Text:QUESTION 2
Study the table below and use it to answer the questions that follow and calculate the Expected
Monetary Values (EMV) of the different outcomes.
DECISION TABLE WITH CONDITIONAL VALUES
STATE OF NATURE
FAVORABLE OUTCOME
UNFAVORABLE OUTCOME
($)
300,000
ALTERNATIVE
($)
Construct a Large Plant
-150,000
Construct a Small Plant
120,000
-30,000
No Plant
Probability
0.5
0.5
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