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Given the Payoff Table Below, Determine the Expected Value and Size

Question 2

Multiple Choice

Given the payoff table below, determine the expected value and size of warehouse that would be built, given a probability of 0.7 and 0.3 to the high and low demands, respectively. Given the payoff table below, determine the expected value and size of warehouse that would be built, given a probability of 0.7 and 0.3 to the high and low demands, respectively. A) $8 million, small warehouse B) $5 million, medium warehouse C) $18.7 million, large warehouse D) $12 million, medium warehouse E) $22 million, large warehouse


A) $8 million, small warehouse
B) $5 million, medium warehouse
C) $18.7 million, large warehouse
D) $12 million, medium warehouse
E) $22 million, large warehouse

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