Scenario 5.3: Wanting to invest in the computer games indust…
Scenario 5.3: Wanting to invest in the computer games industry, you select Whizbo, Yowzo and Zowiebo as the three best firms. Over the past 10 years, the three firms have had good years and bad years. The following table shows their performance: Company Good Year Revenue Bad Year Revenue Number of Good Years Whizbo $8 million $6 million 8 Yowzo $10 million $4 million 4 Zowiebo $30 million $1 million 1 Refer to Scenario 5.3. Where is the highest expected revenue, based on the 10 years’ past performance (the number of good years over 10 years is used to calculate the probability)?
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