The Management of MultiVision, a Cable TV Company, Intends to Submit

Short Answer

The management of MultiVision, a cable TV company, intends to submit a bid for the cable television rights in one of two cities, A or B. If the company obtains the rights to city A, the probability of which is 0.4, the estimated profit over the next 10 years is $10 million; if the company obtains the rights to city B, the probability of which is 0.4, the estimated profit over the next 10 years is $8 million. The cost of submitting a bid for rights in city A is $200,000 and that of city B is $200,000. By comparing the expected profits for each venture, determine whether the company should bid for the rights in city A or city B.
City __________