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In: Statistics and Probability

What is the critical probability under which it would not make a difference to Ken when...

What is the critical probability under which it would not make a difference to Ken when choosing between Sub100 and the Oiler J? Equipment Favorable Market ($) Unfavorable Market ($) Sub 100 300,000 -200,000 Oiler J 250,000 -100,000 Texan 75,000 -18,000

llustrate your results for question 7 graphically on a tab of your Excel Spreadsheet

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Expert Solution

solution:

Probability for which Ken in indifferent in choosing sub100 or Oliver is the point of intersection of graph plotted by using expected value on you axis and probability on x axis.

Point of intersection is p 2/3 and Expected gain is 133333.3

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orchestra answered 2 years ago
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