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A clothing company has determined that it is time to grow th…

Posted byAnonymous April 24, 2021April 24, 2021

Questions

A clоthing cоmpаny hаs determined thаt it is time tо grow their business. They are trying to determine if they should open a new location or expand their online offerings.  The following cost matrix (in thousands) was created.  Recession Stable Expansion New Location 50 80 [location] Expand Online Offerings  60 70 [online]   The probability of a recession is 0.25, the probability of a stable economy is 0.50 and the probability of expansion is 0.25.  Find the expected value of expanding online offerings. Round your answer to one value after the decimal. Do not change the value to thousands, but leave as the formula gives you. For example, if you get 34.3, enter 34.3 not 34,300.

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