1000×x + 10 = 50 = .04 which is a 2 in 50 chance. x 8. (a) Best decision is to wait (b) Probability should decrease to 0,5 9. Rival store 0.7 £40m 0.3 No rival £19m £16m store branch 2 store 0.7 £32m 0.3 No rival £20.8m store branch To maximize expected profit, 3 move to the new site £10m
1000×x + 10 = 50 x = .04 which is a 2 in 50 chance. 8. (a) Best decision is to wait (b) Probability should decrease to 0,5 9. £19m 2 £20.8m 3 Rival store 0.7 0.3 No rival store branch store 0.7 0.3 No rival store branch £10m £40m £16m £32m To maximize expected profit, move to the new site
Solutions%20Manual.docx