Option of investing in product

Assignment Help Operation Management

Reference no: EM131231908

You have the option of investing in product A or product B or choosing to not invest. You estimate there is a 40% chance you will have an unfavorable market and 60% chance it will be favorable. If the market is unfavorable, you will have losses of $4,000 with product A and $6,000 with product B. If the market is favorable, you will have profits of $6,000 with product A and $8,000 with the product B. What is your best decision and expected profit?

Reference no: EM131231908

Questions Cloud

What the alignment of your beliefs and values would permit : Describe the actions you must do and the leadership traits you must possess to enable successful change in any organization. Display your Critical thinking about what is needed, what you have control over, and what the alignment of your Beliefs and V..

Explain what the term trading range means : Explain what the term trading range means. - Why is it hard for a trader to make money when the market is in a trading range?

What are the common forces or drivers of change at work : What are the common forces or drivers of change at work, and how can this knowledge improve my personal effectiveness. Additionally, why do people resist change and what can I do about it

How might jonathon recognize a breakout : Why do you think Jonathon is sitting on the sidelines while the stock is trading in the congestion area? - How might Jonathon recognize a breakout?

Option of investing in product : You have the option of investing in product A or product B or choosing to not invest. You estimate there is a 40% chance you will have an unfavorable market and 60% chance it will be favorable. you will have profits of $6,000 with product A and $8,00..

When does a breakout from the trading range occur : Make a photocopy of this chart and mark the peaks and troughs on the chart. - Which of the peaks and troughs that you marked fulfill the two-bar reversal point criterion?

Financial modelling techniques and tools : FNSINC601 - Briefly identify and explain with suitable examples other financial modelling techniques and tools and capital adequacy requirements for financial services organisations in general and deposit taking institutions specifically based on fi..

Ethics impact business relationships within an organization : How does ethics impact business relationships within an organization? How can leaders and their leadership styles impact the ethical practices within an organization? How does ethics impact an organization’s overall culture?

Write about introduction of organizational behaviour : Write 250 words on introduction of organizational behaviour? Show the determinants of satisfaction/dissatisfaction for this service organisation. Use relevant theories to also discuss service quality measurement (and quality gaps) in this organisat..

User Account

All Pages